Essays On The Urban Economics Of Housing And Land Markets

Author : Kyoochul Kim
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (959 download)

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Download or read book Three Essays in Urban Economics written by Kyoochul Kim and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapter 1: Payment performance and residency discounts in the rental housingmarketThe previous literature on rental housing has studied length of residence discountsby concentrating on turnover cost. I present an analysis of the impactof tenant payment performances on landlord rent setting. First, I establish andsimulate landlords dynamic optimal rent setting model in light of the tenantsprevious rent payment performance. Under some environments, simulation resultsshow an interesting outcome, landlords give rental discount to tenants who had laterent payments. I then use Experian RentBureau data to estimate the relationshipbetween payment history on rent, and find that tenants who had poor paymentperformance received subsequent rent discounts during the housing markets expansionperiod (2002-2006) while payment performance has less or no influence onrent setting after the subprime mortgage crisis. These results are predicted by thesimulations of the theoretical model.Chapter 2: The Value of name in the housing market: Evidence from a SouthKorea address change policyThis paper delves into the existence of the name premium in the housing market. InSouth Korea, the method of address designation has been changed from area-basedto street-based as of January 1st, 2014. Before the change, people recognized thename of the administrative region and apartment name in the address, but afterwardthese pieces of information have been less clear and not identified as part ofthe mailing address. This provides a good opportunity for a natural experiment to explore the importance of name for property values. Using a difference-in-differencemodel, I explore the effect of name premium on apartment prices in Gangnamarea, South Korea. This region has both very prestigious and less prestigiousneighborhoods, but the prestige becomes less apparent when this addressing policychange occurred. I test the hypothesis that the marginal willingness to pay forprestigious locations declines once the prestige is not signaled through the postaladdress. This would be evidence of conspicuous consumption, since the physicalstructure of the property has not changed.Chapter 3: Analysis of the Effect of Land Value Taxation on Land ValueDiscovering the economic effect of land value taxation is the crucial evidenceneeded to support or oppose land value taxation. So far, analyses of land valuetaxation have been based on indirect measures (value of building, constructionactivities) of these impacts. Contrary to previous papers, I employ the directvalue of the land - land sales transaction data - in order to investigate the relationshipbetween land value and its taxation. In addition, I propose a realisticland-improvement tax rate ratio which include county, municipality and schooldistrict tax rates. This paper shows that land tax rate and land-improvement taxratio have no influence on land value. This finding disagrees with the rationale ofadvocates argument in favor of land value taxation.