Aggregate Property Values Research Articles

Korelasi CBR Kondisi Soaked Dan Unsoaked Agregat Lapisan Pondasi Bawah (LPB) Pada Timbunan Jalan (Studi Kasus: Agregat LPB Jalan di Pulau Bengkalis)

By origin, the surface soil on Bengkalis Island is a type of sedimentary soil in which the subgrade has a relatively low carrying capacity and also has a low surface elevation and is prone to water inundation (flooding). In order to increase the bearing capacity and increase the elevation of the road surface, the road construction is filled with aggregate in the sub-base layer (LPB) of the road. All road LPB aggregates used on Bengkalis Island are imported from outside and spread over several quarries. Before the road LPB aggregate is used as a road construction fill material, the LPB aggregate is first tested for CBR carrying capacity under soaked sample conditions. While in the field, to check the quality of the CBR carrying capacity, testing was carried out under unsoaked sample conditions. In this study, uses road LPB aggregates from 3 (three) different quarries. A series of tests were carried out in accordance with SNI, to determine the aggregate property values and determine the correlation between the unsoaked CBR bearing capacity and the soaked CBR of the aggregate. The bearing capacity correlations of unsoaked CBR and soaked CBR are obtained with a strong correlation level (R2 > 80%) with different correlation equations between the aggregates of each query.

Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values?

We use data on all Wisconsin municipalities during the period 1990–2003 to study the effect of tax increment finance (TIF) on economic development. We use appropriate statistical techniques to measure the impact of TIF and control variables on aggregate property values. We also examine the possibility communities that use TIF are self‐selected. We find little evidence that TIF has led to significant increases in aggregate property values or that TIF increases the total value of residential and manufacturing property within a community. Surprisingly, we find positive impacts for commercial TIF districts.

An Estimate of Increases in Storm Surge Risk to Property from Sea Level Rise in the First Half of the Twenty-First Century

Abstract Sea level is rising as the World Ocean warms and ice caps and glaciers melt. Published estimates based on data from satellite altimeters, beginning in late 1992, suggest that the global mean sea level has been rising on the order of 3 mm yr−1. Local processes, including ocean currents and land motions due to a variety of causes, modulate the global signal spatially and temporally. These local signals can be much larger than the global signal, and especially so on annual or shorter time scales. Even increases on the order of 10 cm in sea level can amplify the already devastating losses that occur when a hurricane-driven storm surge coincides with an astronomical high tide. To quantify the sensitivity of property risk to increasing sea level, changes in expected annual losses to property along the U.S. Gulf and East Coasts are calculated as follows. First, observed trends in sea level rise from tide gauges are extrapolated to the year 2030, and these changes are interpolated to all coastal locations. Then a 10 000-yr catalog of simulated hurricanes is used to define critical wind parameters for each event. These wind parameters then drive a parametric time-evolving storm surge model that accounts for bathymetry, coastal geometry, surface roughness, and the phase of the astronomical tide. The impact of the maximum storm surge height on a comprehensive inventory of commercial and residential property is then calculated, using engineering models that take into account the characteristics of the full range of construction types. Average annual losses projected to the year 2030 are presented for regions and key states and are normalized by aggregate property value on a zip code by zip code basis. Comparisons to the results of a control run reflecting the risk today quantify the change in risk per dollar of property on a percentage basis. Increases in expected losses due to the effect of sea level rise alone vary by region, with increases of 20% or more being common. Further sensitivity tests quantify the impact on the risk of sea level rise plus additional factors, such as changes in hurricane frequency and intensity as a result of rising sea surface temperatures.

Government, Effectiveness, Performance, and Local Property Values

We offer a practical measure of local government effectiveness in the provision of public services relating service expenditures to aggregate property value. Building on the work of Brueckner (1979, 1982, 1983) and Henderson (1990, 1995) we present an aggregate property value maximization model where levels of local public services are capitalized into aggregate property values. Using data for Wisconsin municipalities we demonstrate that service expenditure levels, and simultaneously corresponding taxation levels, are suboptimal and should be increased. The aggregate property value maximization test suggests that local public services in Wisconsin are consistently under-provided. By monitoring local property values officials can objectively measure if public services are being provided in an optimal manner.

Testando a eficiência alocativa dos municípios paulistas

Este artigo tem por objetivo testar a hipótese de eficiência alocativa para os municípios de São Paulo, usando o modelo proposto por Brueckner (1982). Neste arcabouço teórico, sob certas condições, o valor agregado das propriedades em uma comunidade que utiliza o imposto sobre propriedade é uma função com característica de U-invertido com relação ao bem público. Desta forma, comunidades eficientes, ou seja, aquelas em que o bem público é oferecido de forma ótima, apresentam níveis de gastos públicos que não afetam o valor das propriedades desta comunidade.Utilizando dados em painel e considerando variáveis instrumentais, os resultados apontam que os gastos destes municípios influenciam de forma negativa o estoque de capital (valor agregado da propriedade), sugerindo que os bens públicos estão sendo ofertados de forma ineficiente, além do nível ótimo.

Leviathan in the Crosshairs

Following in the spirit of the Leviathan hypothesis, this paper empirically examines how the degree of local government market power influences efficiency in the local public sector. Market power is measured by the number and relative size distribution of similar government units in the same market area. To avoid confusing market power with the comparative efficiency or superiority of larger sized organizations, the relative size distribution of the individual government unit is held constant in the empirical analysis. In the empirical test, aggregate property values serve as the measure of efficiency. The empirical results suggest that aggregate property values are lower and thus efficiency suffers, in more concentrated municipal market areas, ceteris paribus, thus providing some evidence for Leviathan-type governments in Connecticut.

The impact of a state mandated expenditure floor on aggregate property values

Using a test of allocative efficiency in the local public sector developed by Brueckner [Journal of Public Economics 19 (1982) 311–331], this study empirically examines the impact of a state minimum education expenditure requirement on aggregate property values in Connecticut communities. The empirical results reveal that the typical community in Connecticut spends less on education and municipal services than the level that maximizes aggregate property values. The results further indicate that spending on education falls further below the property maximization level in those communities constrained by the state expenditure floor. It follows from the analysis that some state expenditure floors can raise aggregate property values and promote efficiency.

The Creative Destruction of Montreal: Street Widenings and Urban (Re)Development in the Nineteenth Century

Rapid industrialization of North American cities during the nineteenth century was associated with periodic innovations in transportation and massive increases in traffic, which, in turn, caused perennial problems of congestion in ill-adapted urban cores. During the latter half of the nineteenth century, the municipal government of Montreal expropriated and destroyed thousands of properties to widen dozens of existing streets. This paper argues that the key to these acts of "creative destruction" was the removal of barriers to circulation through a periodic redimensioning of the "urban vascular system, " and hence, a speed up in the rate of urban growth. A detailed investigation of the planning and execution of major street widening projects between 1862 and 1900 reveals how the built environment of Montreal was periodically destroyed and recreated by a local growth coalition committed to increasing aggregate rents, property values, and municipal revenues, through the intensification of land use. Examination of a sample of properties before and after street widenings suggests that redevelopment was most intense during economic boom periods and in central areas, when and where competition for space was most extreme, and there existed the greatest pressure to remodel the built landscape to fit the needs of a changed economic environment.

The importance of demographic analyses in state- and local-level policy evaluations: A case study analysis of property taxes in Texas, USA

The reluctance of policy-makers to incorporate detailed demographic analyses in policy analyses often means that population composition is ignored in state and local policy evaluations. This article uses standard demographic projection, standardization and rate decomposition techniques to examine the implications of changing population composition for the property tax revenue base of Texas. The authors find that if current socioeconomic differentials persist into the future, projected compositional changes in the household population of Texas will significantly impact property tax revenues. Thus revenue projections based on aggregate growth and current average property value would seriously overestimate future property tax revenues in Texas because changes in the composition of the population lead to disproportionate growth in households likely to live in lower valued housing unite. The results indicate that the continuing focus of state and local policy-makers on changes in population size alone may be ill-advised and demonstrate the increasing importance of local- and state-level demographic analysis in a period of increasing Federal devolution of service provision.

Opposites Attract: The Effect of the Federal Income Tax Code on Community Composition

If houses in two homogeneous but dissimilar communities are reorganized as a single heterogeneous community, property tax payments are shifted from owners of small houses to owners of large houses. We consider three aspects of the federal income tax code which causes this shifting to raise aggregate property values in the heterogeneous community. First, the property tax is deductible and the tax rate structure is progressive. Second, some families do not itemize. Third, the restriction on saving in tax-deferring assets suggests the use of different interest rates to capitalize future property taxes. Because of these aspects, heterogeneous communities are established provided the different family types desire similar levels of public service.

A Test of Executive Behavior in the Local Public Sector

This paper provides an empirical framework to test three competing theories regarding the behavior of public executives in the local public sector. These alternative theo- ries are the public interest, median-voter and expense preference (or surplus-maximizing Leviathan) models. This study tests these various theories by determining whether aggregate property values, the median-value of housing or administra- tive expenditures is a more significant determinant of the salary of a representative school executive in Connecticut. The empirical results lend some support for the expense preference model (Leviathan model) of public executive be- havior.

Public intermediate inputs, property values, and allocative efficiency

This letter shows that when public goods are intermediate inputs as well as final consumption goods, stationary of aggregate property value under a marginal change in public spending implies satisfaction of a generalized Samuelson efficiency condition. This result shows that the empirical test for efficiency of Brueckner (1982) remains valid when public goods enter firm production functions.

Property value maximization and public sector efficiency

This paper analyses the efficiency implications of property value maximization. Communities are open, so that utilities are parametric to housing producers and the local government. Each local government chooses its public good output to maximize aggregate property value in the community, ignoring feedback effects on the composition of the housing stock. It is shown that this type of government behavior generates an equilibrium in which all communities are internally Pareto-efficient.

A test for allocative efficiency in the local public sector

This paper develops a test for Pareto-efficiency in the local public sectorusing the analytical result that aggregate property value is maximized at the public output level which satisfies the Samuelson condition for efficiency. By using cross-section data, it is possible to deduce whether a representative community provides its public goods in a property-value-maximizing (and hence efficient) fashion. The empirical results show no systematic tendency to either under- or over- provide public goods in a sample of Massachusetts communities.

The Impact of Transit Investment on Housing Values: A Simulation Experiment

This paper uses a joint-choice logit model of travel demand and residential location to simulate the impact of urban rapid-transit investment on housing values within a radial corridor. The model developed is a clean break with the traditional urban economic theory. Instead the heterogeneous nature of travel and location decisions is recognized and the logit model, consistent with stochastic utility maximization, is employed. Simulation experiments reveal that the aggregate increase in property values caused by transit's impact on work trips is highly sensitive to the aggregate number of vacancies within the corridor. Under reasonable assumptions, transit investment tends to lower central-city property values, to increase central-city vacancies, and to raise suburban property values. It tends to help the poor move further away from the center and penetrate the inner suburbs. Depending on several influences, aggregate property values can increase or decrease and the change can often be statistically insignificant. Calculations show that an equitable taxation (and compensation) of property-value changes may raise a small to modest proportion of a transit system's construction cost. Several considerations suggest that even these modest estimates might be optimistic. These results help develop an improved perspective on ‘value-capture policy’ which has not, up to now, benefited from quantitative analysis. Major extensions of the model are briefly considered.

Air Pollution and Property Values: Further Comment

There has been disagreement in recent years' about the merits of empirical studies, pioneered by Ridker and Henning (R-H) in this Review,2 measuring the relationship between property values and air pollution within a metropolitan area. In these studies multiple regressions of property values on air pollution and other housing characteristics, and sometimes on income, are performed for crosssectional data within a metropolitan area. Unfortunately, the debate has centered on the prediction of changes in aggregate property values in response to changes in overall pollution levels. This has obscured the central issue, which is the measurement of the costs of pollution from the point of view of willingness-to-pay.3 Where the discussion has touched on this question, it has failed to recognize a straightforward argument by which the use of these empirical studies for cost-benefit analysis can be justified. Anderson and Crocker (A-C) and Polinsky and Shavell (P-S) both use the unrealistically strong assumption of identical tastes to argue that the regression can identify the parameters of a demand curve.4 Freeman (1971, p. 416) correctly points out that, in the real world, such a regression cannot isolate demand from supply elements; but he apparently does not realize how much information can be culled from the properties of the resulting equilibrium situation.5