Comparing approaches to economic impact analysis of property redevelopment

Hannum C. M.

JOURNAL OF PROPERTY INVESTMENT & FINANCE, cilt.33, sa.4, ss.362-373, 2015 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 33 Sayı: 4
  • Basım Tarihi: 2015
  • Doi Numarası: 10.1108/jpif-09-2014-0060
  • Dergi Adı: JOURNAL OF PROPERTY INVESTMENT & FINANCE
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus
  • Sayfa Sayıları: ss.362-373
  • İstanbul Teknik Üniversitesi Adresli: Evet

Özet

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.

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.