Questions and Answers of Economics And Real Estate

Contact a public economic development agency that operates within an urban area of your choice. This agency might be a department of the central city government, for example. What are the primary
Suppose that you are the economic development czar of your urban area. You have decidedtopursuethegoalofincreasingthepercapitaincome of residentsoftheurbanarea(without regard to income distribution),
Assume that the nation and an urban area have the following employment figures in the base year.Industry A Industry B Industry C U.S. 1,000 2,000 500 Urban area 100 100 100 Assumenationalgrowth
You conduct a study of a growth industryin a large number of urban areas and findthat ln ð Þ¼ E1 E0 0:44 þ 0:62 ln E0 þ 0:48 Pop þ ...whereE0 is employmentintheindustryinthe base year,E1 is
Suppose that the growth rate of an industry in an urban area has been found to be a function of:– The growth rate of labor, with a coefficient of 0.75– The growth rate of capital, with a
Find out if there are any books on the economic history of the urban area of your choice. Most of the older, large urban areas have rather extensive bibliographies.Select one of these books. Does the
Return to the local economy depicted in Table 22.1. Suppose that exports double(manufactures increase to 40 and services increase to 20).a. Recalculate the entire table.b. Does the size of the local
Assume the following input-output table for a local economy:Purchasing Industry A B Final Demand Gross Output Producing A 10 50 40 100 Industry B 30 10 30 70 Value Added 60 10 Total Inputs 100 70 70
Consider Muth’s famous ‘‘chicken or egg’’ model of urban growth. It is written that:dE ¼ aM M ¼ b dð Þþ E u;where E is employment in the urban area, dE is the change in employment, M
Suppose that the growth rate of gross urban product for an urban area is:y ¼ 0:25ð Þþ k 0:75ð Þþ e t k ¼ ð Þþ s=v j e ¼ n þ m;where y is the growth rate of GUP, k the growth rate of
You have estimated a Keynesian model for Ruston as follows:C ¼ 100 þ 0:9 1ð Þ t Y T ¼ tY ¼ 0:3Y M ¼ 0:23 1ð Þ t Y I ¼ 150 G ¼ 200 X ¼ 300 Remember that imports (M) are part of total
You are the economist for the Department of Economic Development of Ruston, Pennsylvania. You know that employment in export industries is 25,000 and that total employment in the urban area is
Use the Current Population Survey data on the Census web site to examine pay differentials by race for other age groups besides the 25–34 age group.
Following the data depicted in Table 21.1, suppose that the average male high school graduate earns about $4,000 per year more (after taxes) from age 21 to 24 than does the man who did not earnthe
Suppose that there is a training program that will increase a trainee’s earnings by$1,000 per year before taxes and by $750 after taxes. The actual cost of the program is$5,000 pertrainee, and the
Suppose that crimes are committed up to the point where the private marginal benefit of committing a crime equals the private marginal cost:B(N; Q) ¼ P(N) C;where B is the marginal benefit of
Check the FBI web site for ‘‘Crime in the United States,’’ and find out the crime rate for an urban area and central city of your choice.
The function that relates the inverse of speed (1/S) to traffic volume on a highway is 1=S ¼ (1=60) þ 0:0005V;where the inverse of speed is measured in hours per mile. What would this equation be
Consider an urban highway that is subject to traffic congestion. The average cost of travel per mile on that highway is (in cents):AC ¼ 10 þ 4V;where V is traffic volume per hour, measured in 100s
Consider a circular road with one lane that is two miles in length. There are 80 cars on this ‘‘track’’ travelling 50 miles per hour—speed (S) is 50.a. What is the traffic density (D)?b.
Youare supposedto be at your desk ready forworkat 9:00 AM.Youcannot belate or you will be fired, butitis fineif you arrive early. You figurethat eachminute you spend at work before 9 AM costs you 3
A model of mode split (with two modes) has been estimated as ln(Pija=1 Pija) ¼ 8(ta tb) 2(ma mb);where mode a is auto and mode b is public transit, t(travel time) is measured in minutes,
Suppose a gravity model of trip distribution has been estimated as Tij ¼ O0:5 i D0:2 j =dij:a. What is Tij if Oi ¼ 100, Dj ¼ 200, and dij ¼ 5 miles? What if the distance is 10 miles instead of
There are two types of matching grants. The one presented in the text is actually an ‘‘open-ended’’ grant because there is no limit to the amount of money that will be provided by the grant
Consider the model of property taxation of industrial real estate as applied to Cook and DuPage Counties in Illinois discussed previously. Suppose that the capitalization rate is 9.0% instead of
Suppose that the demand for housing in an urban area can be expressed as R ¼ 10;000 Q;where R is annual rent and Q is quantity of housing units.The supply of housing is a function of the market
Return to problem 1, and assume that the jurisdiction now includes the same 125 households and 175 households with the demand for the public good G ¼ 50 0:5 p:Suppose that the decision regarding the
A local jurisdiction is (a la Tiebout) populated with 125 households who have identical demands for a local public good G that can be expressed as G ¼ 100 0:5 p;where p is the price per unit of the
Read the business section of your major local newspaper and find an article on a prominent real estate development. Determine whether that development is profitable from the information provided in
Redo the front door and back door analysis of the shopping center case using a loan amount of 50% of the total capital budget.
Complete the problem in the text that was noted ‘‘to be done in class.’’
Go to a web site for a commercial real estate firm that provides (free) office market data. CB Richard Ellis, Cushman and Wakefield, and Grubb and Ellis are good choices.If one does not work, try
Suppose that the demand for office space (measured in millions of square feet) is Q ¼ 150 3R:The demand for vacant space is V ¼ 25 R The total amount of space is 110 msf. The cost of capital is
For a country of your choice examine the overall package of policies aimed at improvingthe housing oflow-income households.Doesthat country rely on supply-side, demand-side, and/or rent control?
Look up the nature of the rent control program for a country (or local area) of your choice. What type of rent control program is it? Are there any studies that show the effects of the program? If
Suppose that the demand for housing by low-income households is H ¼ A Yb pc Here b is the income elasticity of demand and c is the price elasticity of demand. Let A ¼ 0.0333, b ¼ 1, and c ¼
Consider the King-Fullerton analysis of the taxation of income from capital as applied to owner-occupied housing. Use the same model and numerical magnitudes as in the text. What would happen to the
You have been given the task of estimating the market value of an office building, and you have been given the following information.The building contains 150,000 square feet of rentable space, and
This project is to perform what the real estate agents call a comparative market analysis. Select a subject property (e.g., your family’s single house) for which you obtain an estimate of market
Examine the real property rights for a country of your choice. Provide (brief) answers to the five questions listed at the beginning of the chapter.
The market for residential land in an urban area can be described by the following set of equations:(1) lD(x) ¼ BR(x)u Individual household’s demand curve for land at distance x (2) LD(x) ¼
Assume the following The population and lot size are fixed All households occupy the same amount of land K All households must travel to and from downtown once per day The marginal cost of travel is
Add a secondindustryto Exercise 2 from Chapter 6.Thisindustry produces a good for export at a price of $20 per unit at the point of export, and transportation costs are $1 per mile per unit of
Suppose that a household resides in an urban area at a distance to downtown of 8 miles. The household occupies 3,000 square feet of land, and at this distance land rent is $1.50 per year per square
Consider an industry in a circular city. The industry produces a good for export, and the export point is the center of the city. The price of the good at the point of export is $10 per unit.
Return to the model of pure economic rent depicted in Figure 5.1. Recall that the market value V of an asset such as land that lasts forever is V ¼ R/r, where R is the annual rent and r is the going
Selecttwo global citiesas suggested by Sassen (2000).Global citiesintheU.S.include New York, Los Angeles, Chicago, San Francisco, Miami, and Houston. Use BLS data to compare the composition of
Collect data on employment for an urban area of your choice and for the entire U.S.using data from the Bureau of Labor Statistics web site. Create a table that shows employment by major NAICS
You selected an urban area for more detailed examination as an exercise in Chapter 2.Continue with that urban area and assess the ‘‘location factors’’ that are discussed in this chapter. What
Consider an industry in an urban area that is subject to localization economies. The industry faces the demand curve P ¼ 59
Imagine that there are two ice cream vendors on a linear beach 100 yards long. We assume that– Consumers are evenly distributed along the beach, located at the endpoints and spaced 10 yards
A business has customers located in Lubbock, Amarillo, and points in between as follows:Lubbock 10 customers 10 miles from Lubbock 1 customer 25 miles from Lubbock 3 customers 50 miles from Lubbock 1
You own a firewood business that involves chopping down trees, cutting the trees up into firewood, and transporting to the market. You can cut the trees up into firewood where they are cut down, or
Select an issue of public policy that is under debate in the news media in an urban area of your choice. For example, the issue might have to do with public housing, schools, environmental
Use the four methods discussed in Section F above to make population projections for the New York and Los Angeles metropolitan areas for 2010 and 2020. Does LA LA land overtake the Big Apple? If so,
Select a major urban area that has not been discussed in this chapter, and conduct an empirical analysis that is similar to the ones contained in Tables 2.1–2.10.