Overcapitalization and cost escalation in housing renovation
New Zealand Economic Papers, 2011, vol. 45, issue 1-2, 119-138
This paper aims to show how housing renovation projects, for example such infamous projects as the Sydney Opera House or Euro Tunnel, may take considerably more time and money than budgeted. The author presents empirical results based on the primary data collected from 280 survey-recruited renovators in 2006 and 2007, in Brisbane, Australia. The paper examines what makes renovators end up with overcapitalization (i.e. spending more than what can be recouped via the value of property) and cost escalation (i.e. keeping spending beyond the estimated expenditure) in a pluralistic approach combining the theories of mainstream economics and behavioural economics.
Keywords: housing renovation; overcapitalization; cost escalation; behavioural economics; psychological factors (search for similar items in EconPapers)
References: Add references at CitEc
Citations Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:nzecpp:v:45:y:2011:i:1-2:p:119-138
Ordering information: This journal article can be ordered from
Access Statistics for this article
New Zealand Economic Papers is currently edited by Gail Pacheco
More articles in New Zealand Economic Papers from Taylor & Francis Journals
Series data maintained by ().