Abstract
This research tries to interpret the results of the empirical analysis of urban land value variations from 1977 to 2012 in the regional Italian capital cities based on the well-known theory of urban land rent. The historical series to be analyzed were obtained as the difference between the market value of a property and its cost of production. The paper shows, in quantitative terms, how differential and absolute rents will be translated into the dynamics of land values in relation to local specificities. The analysis of urban land rent evolution and the comparative study of the phenomenon compared to urban geography highlighted the difference among the various urban systems investigated and the criticalities generated by processes of transformation that have affected some Italian urban contexts. The difference is essentially explained by the different weight of macroeconomic variables, related to national and international contexts, and microeconomic variables, closely related to local demand and supply, in the process of rent formation.
Highlights
Based on a historical series of property values and production costs of buildings from 1977 to 2012, this study analyses the dynamics of the urban rent of residential land in the 19 regional Italian capital cities, distinguishing three concentric zones: the centre, the semi-centre, and the suburbs
It is assumed that each annual figure is the expression of ancondition equilibrium condition, and that, the observation of assuming value dynamics, the subsequent equilibrium (to was condition, and that, in the observation of value dynamics, the subsequent equilibrium condition is be identified as a assumed consequence a extra new phenomenon generator of rent orequilibrium its evolution) is cost.realized
This paper attempted to interpret the results of an empirical analysis conducted on land value changes in Italian regional capital cities according to urban land rent theories
Summary
Based on a historical series of property values and production costs of buildings from 1977 to 2012, this study analyses the dynamics of the urban rent of residential land in the 19 regional Italian capital cities, distinguishing three concentric zones: the centre, the semi-centre, and the suburbs. Despite supply always determining surplus, i.e., the difference between the availability to pay for a good and production cost, the sum of wages, and normal profit, rents by dominant position and inefficiencies are primarily safeguarded from competition by institutional and market constraints. This type of rent, defined as absolute, differs from the differential one that arises from a restriction in the availability of land of a certain quality. The need to balance static analysis, which bases its foundation on the assumption of a competitive market, with the empirical evidence of monopoly rents, the idea to mix the “walled city with open city”, poses some clear theoretical problems that require much more extensive analysis of a dynamic nature [16]
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