1996
DOI: 10.1006/juec.1996.0005
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Urban Development with Lags

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Cited by 75 publications
(55 citation statements)
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“…In a model with uncertainty, Capozza and Helsley (1990) argue that developers should delay development until the value of the built-up land compensates 17 for, not just the value of land in the best alternate use plus conversion costs (as in Arnott and Lewis, 1979), but also the option value of not developing in the face of uncertainty. Bar-Ilan and Strange (1996) extend Capozza andHelsley (1990) to allow for the fact that there are often long lags between the decision to build and the completion of construction. In this framework, uncertainty about urban growth translates into greater rent uncertainty the further away a parcel is from the city center.…”
Section: Iva the Monocentric City Model And Its Generalizationsmentioning
confidence: 99%
“…In a model with uncertainty, Capozza and Helsley (1990) argue that developers should delay development until the value of the built-up land compensates 17 for, not just the value of land in the best alternate use plus conversion costs (as in Arnott and Lewis, 1979), but also the option value of not developing in the face of uncertainty. Bar-Ilan and Strange (1996) extend Capozza andHelsley (1990) to allow for the fact that there are often long lags between the decision to build and the completion of construction. In this framework, uncertainty about urban growth translates into greater rent uncertainty the further away a parcel is from the city center.…”
Section: Iva the Monocentric City Model And Its Generalizationsmentioning
confidence: 99%
“…This irreversibility assumption can be relaxed, as is outlined below. A detailed demonstration of this technique for a geometric process can be found in Bar-Ilan and Strange (1996).…”
Section: Summary and Extensionsmentioning
confidence: 99%
“…Alvarez and Keppo, 2002;Bar-Ilan and Strange, 1996). We do not consider the latter aspect in the present application due to the unavailability of the necessary data.…”
Section: Objective Functionmentioning
confidence: 99%