Urban land valuation with bundled good and land residual assumptions

John M. Clapp and Thies Lindenthal

Journal of Housing Economics, 2022, vol. 58, issue PA

Abstract: This paper develops a new approach to estimate the value of urban land. We extend AMM theory by adding the assumption of partial irreversibility. Bundled goods assumptions imply that land value with a structure can evolve differently than as-if vacant value, even in the first decades of structure life. We develop a hybrid model that nests bundled goods with land residual methods and we develop a new test of predictive accuracy. Granular house price indices produced by machine learning are used to estimate hybrid economic structure and land values.

Keywords: Land valuation; Property valuation; CAMA; Machine learning (search for similar items in EconPapers)
JEL-codes: R30 R31 R32 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:58:y:2022:i:pa:s1051137722000444

DOI: 10.1016/j.jhe.2022.101872

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