Economic Analysis for Property and Business Book

	Acknowledgements	ix
	Introduction	xi
	The methodology of economics	xv
Part 1	Market analysis for the property analyst
1	Applied property market analysis: the theory of demand and supply	3
	The essentials of the market system	3
	Applied demand theory	5
	Applied supply theory	15
	The formation of market equilibrium	20
	The impact of changing market conditions	21
	Conclusion	22
2	Measured market analysis - the concept of elasticity	23
	Price elasticity	24
	Income elasticity of demand	36
	Cross price elasticity of demand	38
3	Dynamic property market analysis	40
	Owner-occupied housing	40
	Technological change and the location of property	47
4	Market analysis for the factors of production in the assembly of property	56
	The market for land (with specific reference to building land)	56
	The market for construction materials and components	61
	The market for building labour	64
	Entrepreneurship and individual effort	69
	Productivity in the construction industry	72
	Innovation in the construction industry	77
5	Market forces, the property investor and their role in the creation of the built environment	83
	Conventional investment appraisal techniques	86
	Discounting techniques of investment appraisal	90
	A critique of investment appraisal techniques	93
	The determination of the economic life of a building	94
6	Government intervention in land and construction markets	107
	Taxation and subsidization	107
	Regulatory policy: health and safety in buildings and land use control	112
	Price control policies	114
7	Market failure in the built environment	124
	Externalities in the built environment	125
	Urban policy and externalities	132
	A conclusion on externalities	135
	The case of public goods in the built environment	136
	Monopoly situations in the built environment	138
	Imperfect information in the urban market	139
	Social views and the urban environment	141
	A conclusion on market failure and the rationale for public intervention in the urban market	142
Part 2	Applied theory of the firm
8	Applied cost and revenue theory for construction and property	147
	Revenues of the firm	148
	Costs facing the firm	153
	Normal profit	157
	The profit maximizing rule	157
	The long-run planning decision: the theory of long-run costs	158
	Economies of scale	160
	Diseconomies of scale	162
	Conclusions on economies and diseconomies of scale	163
9	Market structures in construction and property	165
	The theory of perfect competition and its application	166
	The theory of monopoly and its application	175
	The construction industry	183
Part 3	The economy and its management
10	A simple model of the economy for the property analyst	193
	A macro-economic model	193
	Demand in the economy	194
	Supply in the economy	198
	A simple demand and supply model of the macro-economy	199
	The multiplier process	202
11	Primary economic objectives and the property sector	208
	A steady rate of economic growth	208
	A low and steady rate of inflation	215
	A low level of unemployment	217
	A balance of trade	217
12	Macro-economic management, property markets and the construction industry	219
	Demand management	220
	Fiscal policy	220
	Monetary policy	231
	A general overview of demand management	237
	Supply-side economics	238
	Local government macro-economic policy and the built environment	243
	Conclusion	244
	Index	245