Comparing approaches to economic impact analysis of property redevelopment


Hannum C. M.

JOURNAL OF PROPERTY INVESTMENT & FINANCE, vol.33, no.4, pp.362-373, 2015 (Journal Indexed in ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 33 Issue: 4
  • Publication Date: 2015
  • Doi Number: 10.1108/jpif-09-2014-0060
  • Title of Journal : JOURNAL OF PROPERTY INVESTMENT & FINANCE
  • Page Numbers: pp.362-373

Abstract

A model is constructed for Colorado to compare estimates of economic impact of a hypothetical mixed-use development from a CGE model with an input-output (IO) model similar to those commonly used in applied economic impact analysis. Economic impact estimates of construction activity are demonstrated to be lower when using a CGE approach as compared to an IO approach while impact estimates of continuing operations of a property are demonstrated to be more accurate and potentially higher using a CGE approach.

Purpose - The purpose of this paper is to demonstrate the value of computable general equilibrium (CGE) modeling for impact analysis of real estate developments and redevelopments.