Comparing approaches to economic impact analysis of property redevelopment

Hannum, Chrıstopher

doi:10.1108/jpif-09-2014-0060

Comparing approaches to economic impact analysis of property redevelopment

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Hannum C. M.

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

Publication Type: Article / Article
Volume: 33 Issue: 4
Publication Date: 2015
Doi Number: 10.1108/jpif-09-2014-0060
Journal Name: JOURNAL OF PROPERTY INVESTMENT & FINANCE
Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus
Page Numbers: pp.362-373
Istanbul Technical University Affiliated: Yes

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.