We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Theories of rent and urban economics - Essay Example

Comments (1) Cite this document
Summary
This paper presents an essay drawn on the theories of rent and urban economies. The theories explain in detail the patterns in office rent shown in the Colliers UK Office Rent Map. The first section covers the theory of neighborhood. …
Download full paper
GRAB THE BEST PAPER
Theories of rent and urban economics
Read TextPreview

Extract of sample
Theories of rent and urban economics

Download file to see previous pages... The essay further outlines Smith’s rent gap theory and the agricultural land theory. The analysis is followed by an outline of the agent based land market model, and the microeconomic theory. The paper winds up with the central place theory and a conclusive remark on the varied rental patterns in an urban setting. The Collier Map show that there are different rent patterns for urban areas in UK and London in particular. The Western part of London records a mixture of rent patterns with a lower level of 10 pounds, and a higher level of 34pounds. The South East London has a rental pattern that way near similar with the difference between the highest and the lowest; levels being minimal (16-24 pounds). The same scenario applies to the North West and Yorkshire which has one of the lowest/cheapest rental rates. The outskirts of London and the hinterland towns have a low level of rent rates compared with the metropolitan. However, there are some urban areas outside the London Metropolitan which have higher rental patterns. A good example is Dublin with a high of 35 pounds. Urban economics is the study of economies that are organized as urban areas (Harvey and Jowsey, 2003). It also studies the cities which are the modern centre of culture, innovation and education. It is in the urban centers where major commercial activities takes place hence the aspect of many offices being located in the urban areas (MacDonald & McMillen, 2007). Urban economics is closely related to the field of real estate and rental properties. Rent is the amount paid by a tenant to a landlord on a rented or leased space. Many theories exist in the field of urban economics and real estate. They are outlined below; The Neighborhood Theory The first theory is based on the housing prices, neighborhood characteristics, and racial segregation. This theory stipulates that the price of an office premise is determined by the characteristics of the neighborhood as well as the characteristics of the house. These neighborhood factors directly influences the patterns of office rent in given urban areas. Neighborhood variable affect the pattern of office rent either positively or in a negative way. These two factors combine to determine the pattern of rent in a given section of an urban area. They include; crime rate in an area, property tax rate, economic strength of the neighborhood, air pollution, accessibility from nearest train/ bus stations, extent of traffic on the street as well as quality of education/ number of institutions of learning (McDonald & McMillen, 2007). This explains the different office rent patterns in an area like Cambridge which is an educational centre and Nottingham. There has been an increase in the quality of office buildings in some sections of urban areas. This results in changes in office rent patterns. Areas with good quality buildings have different office rent patterns with areas with low quality office buildings. The same case applies to areas with different races. There is a tendency for rental patterns to be high in areas populated by the whites, as opposed to areas with a mixture of races (King and Mieszkoski, 1973). This theory explains the difference rental patterns in the London Metropolitan. Areas such as Wimbledon (?30) and Heathrow (?28) with good quality houses have higher rental patterns as compared with those with low quality such as Norwich (?15). Natural Evolution Theory Natural evolution theory is a model which was advanced by Mieszkowski and Mills (1993). They argue that the filtering model provides a primary reason for the movement and relocation of offices in the suburbs. The result is the emergence of suburbs which acts as commercial centers, characterize by high and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Theories of rent and urban economics Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1392418-theories-of-rent-and-urban-economics
(Theories of Rent and Urban Economics Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.org/macro-microeconomics/1392418-theories-of-rent-and-urban-economics.
“Theories of Rent and Urban Economics Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/macro-microeconomics/1392418-theories-of-rent-and-urban-economics.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ca
cathyjones added comment 3 months ago
Student rated this paper as
This document saved me today. I liked the content. It was very useful for my macro & microeconomics course.
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Urban economics
Sustainable transportation system ensures building of a society that acts as backbone, which supports economic growth through assisting people access their jobs and services easily. If the city is well-planned and laid out properly, urbanization will lessen the overall pollution levels and will preserve the surrounding areas
7 Pages(1750 words)Term Paper
Musical Rent
Name: Institution: Course: Date: Musical Rent The musical rent is a rock music produced by Jonathan Larson. This song was partially created from Giacomo opera La boheme. It narrates the story of a young group of impoverished young musicians and artists who were struggling to survive while creating their work in New York City.
2 Pages(500 words)Essay
Endowment Effect, Behavioural, and Standard Economics Theories
Endowment effect hypothesizes that people put more value on goods or products that they have acquired than those they do not have or own It is largely depends on behavioural decision making that analyses how people often make decisions The standard economics model assumes that the actions of people are pegged on their full information on the action
7 Pages(1750 words)Essay
Rent and Urban Economics
He is indeed called the "father of location theorists". It is composed of group of theories which seeks to explain the sitings of economic activities and is based on the microeconomic premise that individuals choose to maximize their utilities (Answers.com).
6 Pages(1500 words)Essay
Urban Land Prices in a Market System
Urban Land Prices in a Market System We refer to factor of demand as the willingness and the ability of businesses to employ the factors of production and put them to productive use. On the other hand, factor supply is the willingness by the businesses to offer these factors of production so that they can be put to productive usage further.
3 Pages(750 words)Essay
Urban economics
This ubiquity of locational designing has led to the interest of many in locational analysis. P-median model is the most popular and most widely used location-allocation models. (John Current, Mark Daskin and David Schilling, n.d.)
3 Pages(750 words)Essay
Rent Seeking in Economics
If a country wants to abolish the practice of rent seeking behavior, the government officials will have to be firm in destroying the practice of corruption. This can be done by increasing the penalty imposed to government officials who will be proven to have willingly participated in the practice of political corruption. 
4 Pages(1000 words)Essay
Urban
Indeed, unsophisticated people are referred to as provincial, meaning, not from the cities, while urban means sophistication. Furthermore, cities are melting points of culture, and many of them are cosmopolitan areas with a populace consisting of cross-cultural
1 Pages(250 words)Essay
Urban studies- Theories of Poverty
The poor cannot improve their lives. Thus, in these areas, while the rich continue to get richer, the poor continue to suffer since they do not have the relevant and sufficient resources
5 Pages(1250 words)Essay
Urban economics
The population of the country is also a significant factor in the economic growth especially in the line of labor capital and labor market. The above mentioned variables can well be compared to other
5 Pages(1250 words)Essay
Let us find you another Essay on topic Theories of rent and urban economics for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us