Land Rent vs Market Value What is

Land Rent vs. Market Value

What is Present Value?

How is PV discounted?

How is PV calculated?

Market value of land

Land Rent and Productivity

Ricardo model

Ricardo model

Ricardo Model

Leftover principle

Exceptions to leftover principle

Who benefits from improvement?

Scale of improvement

Accessibility

The Carrot Farmer

Carrot Farmer’s bid rent function

Carrot farmer’s decision

The farmer and factor substitution

Bid Rent fn for both farmers

Bid rent of flexible farmer

Two competing land uses

Determinants of bid rent slope

Bid Rent fn for both farmers

Multiple land uses in the CBD

Bid Rent of Firms in the CBD

Freight Costs and Rents

Flexible versus fixed producers

Flexible versus fixed producers

Monocentric city firms’ bid rent function

Nonland versus land inputs for the Flexible producer

Most central firm type: offices

Land use in CBD

Office vs. manufacturing

Multiple land use rent gradient Manufacturing zone Office zone Residential zone

Locational choices

Locational choices

Who occupies what?

Housing price function

Housing price fuction

Housing price function with consumer substitution

Residential housing price function with consumer substitution

Density increases towards center because:

Changes to Residential Model