Semester

Summer

Date of Graduation

2005

Document Type

Dissertation

Degree Type

PhD

College

Chambers College of Business and Economics

Department

Economics

Committee Chair

Santiago M Pinto

Abstract

This dissertation is a collection of essays examining the effects of land-use regulations and redevelopment. The first chapter describes an overview of the Korean housing market.;Chapter 2 employs the stock-flow model in order to incorporate land-use regulation into the analysis. Future land supply can not only constrain housing construction but also affect the people's expectation. Land-use regulations can be incorporated into demand for housing as well as housing construction.;Chapter 3 investigates the impact of land-use regulations on housing market in the case of South Korea. The South Korean rapid income and population growth have produced a sharp increase in housing demand. On the supply side, however, the government has played a crucial role in controlling the housing supply with various regulations in housing and land markets. Much of literature has argued that a shortage of land supply increases housing prices. This paper analyzes the mechanism by which land-use regulations affect housing prices and housing construction. The empirical examination provides that land-use regulations have no binding effects on housing production but raise housing prices by stimulating higher investment demand for housing. The expectation about a shortage of land supply leads to higher future housing prices which in turn spur the current demand. The resulting higher housing prices encourage more housing production by constructing high-rising housing buildings.;Chapter 4 examines the anticipated impact on housing prices of a New Town Development in Seoul announced in 2002. Since the extensive land redevelopment project leads to significant change in residential neighborhoods, it generates spillover effects on the values of housing units located in close proximity. We employ a spatial hedonic housing price model to estimate and measure the spillover impacts of redevelopment with different mixed land uses on surrounding housing prices. The empirical results show that neighborhood spillovers of redevelopment depend on the type of mixed land uses. Housing prices within one kilometer of residential redevelopment mixed with open space were 17 percent higher than elsewhere while houses within one kilometer of residential redevelopment mainly mixed with commercial uses have a higher value of 35 percent compared to those farther away. The empirical results of a pre-post approach suggest that the change in housing prices takes place the year the announcement was made, which implies that housing markets anticipate the future effects of the completed project.;The last chapter summarizes the major findings of the previous chapters and discusses areas of future research.

Download

Share

COinS