Land Value and Parcel Size: A Semiparametric Analysis

Journal of Real Estate Finance and Economics, 1998

Posted: 4 Jun 1998

See all articles by Daniel P. McMillen

Daniel P. McMillen

University of Illinois at Chicago - Center for Urban Real Estate

Paul Thorsnes

University of Otago - School of Business - Department of Economics

Abstract

We use a semiparametric estimator to analyze the relationship between land values and parcel size in a sample of 158 undeveloped parcels in the Portland, Oregon metropolitan area. The semiparametric estimator combines the benefits of parametric and nonparametric estimation. The value-size relationship is estimated nonparametrically, which permits the function to be linear, convex, and concave in different regions. A simple log linear parametric relationship is assumed for the rest of the model, which conserves degrees of freedom and simplifies hypothesis testing. Our semiparametric estimates do not reject log-linearity for the value-size relationship.

JEL Classification: R0

Suggested Citation

McMillen, Daniel P. and Thorsnes, Paul, Land Value and Parcel Size: A Semiparametric Analysis. Journal of Real Estate Finance and Economics, 1998, Available at SSRN: https://ssrn.com/abstract=95808

Daniel P. McMillen (Contact Author)

University of Illinois at Chicago - Center for Urban Real Estate ( email )

601 South Morgan Street
MC 144
Chicago, IL 60607-7121
United States

Paul Thorsnes

University of Otago - School of Business - Department of Economics ( email )

PO Box 56
Dunedin
New Zealand

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
645
PlumX Metrics