From Today's City to Tomorrow's City: An Empirical Investigation of Urban Land Assembly

Leah Brooks and Byron Lutz

American Economic Journal: Economic Policy, 2016, vol. 8, issue 3, 69-105

Abstract: Because cities are constrained by the boundaries of land ownership, fundamental urban modifications require land delineation changes. We evaluate whether there is enough land assembly--the joining together of two or more parcels of land--to put land to its highest value use. We hypothesize that in the absence of market frictions such as holdouts, the price of land sold for assembly should not exceed the price of land sold for other uses. Empirically, we find that to-be-assembled land in Los Angeles trades at a 15 to 40 percent premium and conclude that significant frictions prevent assembly.

JEL-codes: K11 P14 Q21 R14 R30 R52 R58 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/pol.20130399
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Citations: View citations in EconPapers (35)

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