| This thesis explores a broad range of issues and techniques, both theoretical and empirical, in the field of real estate and urban economics. The first chapter provides the motivation for the essays contained in this thesis, and suggests opportunities for further research. The majority of studies examining the impact of group homes on neighborhood property values have found that group homes do not adversely affect property values. The second chapter, a study of seven group homes established in DuPage County, Illinois, finds that properties which are proximate to a group home experience a decline in value following the announcement of a group home's pending establishment. In the analysis, observations across time and space are incorporated into a format that is similar to an event study. The model is the first in this literature to accommodate different price levels and appreciation rates across neighborhoods. In the third chapter, the properties of competitive location equilibrium are used to study the demand for recreation and the choice of primary residence location. Location specific recreation and employment lead to pooling equilibria in which consumers reside according to their preference for recreation, In general, the stronger the taste for recreation, the greater the attraction of living close to the recreation site and the lower the demand for housing. The effects of trip frequency, trip length and recreation housing cost on the spatial distribution of consumers are considered. The effect of the wage rate on recreation and location demands is also explored. In the fourth chapter, the alternatives available for transferring agricultural property on the urban periphery are considered. The model examines the conditions under which market participants sell or exchange farmland. Contrary to popular opinion, simultaneous exchanges are still feasible in the presence of delayed exchanges, particularly when the relinquished property is very large. The model also explains the observed phenomenon that sellers of agricultural property get replacement properties of lesser market value in exchanges. |
