Please use this identifier to cite or link to this item:
|Title:||Contestability of the urban land market: An event study of Hong Kong land auctions|
Urban land market
|Source:||Ching, S., Fu, Y. (2003). Contestability of the urban land market: An event study of Hong Kong land auctions. Regional Science and Urban Economics 33 (6) : 695-720. ScholarBank@NUS Repository. https://doi.org/10.1016/S0166-0462(03)00005-X|
|Abstract:||The traditional theory of urban land markets assumes perfect contestability-the absolute freedom of market entry-that compels developers to bid up the land rent to equal the economic profit from land use. This assumption, however, is empirically untested due to the difficulties in measuring the ex ante economic profit of land acquisition. We overcome these difficulties by applying the event-study methodology to Hong Kong government land auctions. When a developer acquires a site at a price below its fair market value, the rationality of the stock market entails a positive abnormal return on the developer's stock. Our analysis shows evidence of positive expected abnormal returns, indicating an imperfectly contestable land market. We further show that the expected abnormal return increases with the site value and the government land disposal level but decreases with the property market liquidity. © 2003 Elsevier B.V. All rights reserved.|
|Source Title:||Regional Science and Urban Economics|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Mar 7, 2018
WEB OF SCIENCETM
checked on Jan 31, 2018
checked on Mar 11, 2018
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.