The Effect of Tax Laws and the Cost of Capital on the Size of Newly Constructed Strip Shopping Centers

Terrence M. Clauretie () and Melvin H. Jameson ()
Additional contact information
Terrence M. Clauretie: University of Nevada–Las Vegas, Las Vegas, NV 89154
Melvin H. Jameson: University of Nevada–Las Vegas, Las Vegas, NV 89154

Journal of Real Estate Research, 2002, vol. 24, issue 1, 79-96

Abstract: While the impact of tax policy and other economic variables on the total amount of construction has been widely studied, this paper proposes that these variables also affect the size distribution of the properties constructed. The basic intuition is that there is a lower bound to the economically feasible size of a project due to economies of scale in construction. Events favorable to construction, such as lower interest rates and more favorable tax treatment, relax this lower bound permitting the construction of smaller properties. We test this proposition using data on newly constructed neighborhood shopping centers in Clark County, Nevada during the period from 1971 to 1999.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2002
References: Add references at CitEc
Citations:

Downloads: (external link)
http://pages.jh.edu/jrer/papers/pdf/past/vol24n01/04.79_96.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jre:issued:v:24:n:1:2002:p:79-96

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://pages.jh.edu/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is currently edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323.
Bibliographic data for series maintained by JRER Graduate Assistant/Webmaster ().