Article Summary - Cure for Urban Sprawl: Measuring the Ration of Marginal Implicit Prices of Density-To-Lot-Size

Article Summary - Cure for Urban Sprawl: Measuring the Ration of Marginal Implicit Prices of Density-to-lot-Size

The Census data used for this articles location is Knox County, Tennessee and the subjects are 22,704 single-family homes sold between 1998 and 2002. 15,50 randomly selected for analyzing as local County officials suggested, "that the price sales below $40,000 probably were associated with gifts, donations, and inheritance, and thus would not reflect true market value...also parcels smaller than 1,000 square feet were eliminated from the sample data" (Roberts; Cho, 2007). Misinformation identified indicates a focus in statistical gathering of data is eliminated as results observed to remain in accordance with reasonable data. Knoxville County metro region in 2000, the study calculated neighborhood density as the number of single-family houses divided by the number of acres showed an adjustment in price fluctuations in the real estate market.

Empirical results present results dependent on house prices with the adjusted local and global model parameters. Neighborhood density and large lot size evaluated showed a coefficient indicating a direct relationship price of the house and square footage. This ratio is known as 'ratio of marginal implicit prices of density-to-lot-size', "when the marginal value is high for housing density, the marginal value for lot size is low, causing the ratio to follow the pattern of the numerator, but with increased variance, The correlation coefficient between the two marginal values is negative (-0.20) and significant at the 1% level." (Roberts; Cho, 2007).

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Understanding Urban Sprawl for a stronger argument for policies promoting only high-density development shows the incapability linkage between appropriate polices processes for development consideration of a tradeoff with the size of the lot for spatial variation. The impact people are facing in the current real estate market is an increase and decreases of housing prices across North America believe that their cities have spread out too far known as compact cities on the mix of building types in a city or region. A range of policies have tried to influence the housing market but the outcome imposes an impact on additional fees for development as cost continues to increase for each dwelling type. Higher prices encourage compact cities