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Big house, little house relative size and value

By: Contributor(s): Language: English Series: Real Estate Economics ; 34(3) 2006, 439-456(18)Publication details: 2006Subject(s): Summary: Examines the issue of which the market values more highly: the largest house in a neighbourhood of small houses or the smallest house in a neighbourhood of large houses. Using house sales data from one local government area, this problem is looked at in terms three hypotheses: atypicality, the conspicuous consumption effect and the tax capitalization effect. Concludes that of these theories, the estimates are consistent with the fiscal capitalization theory, which leads to lower prices for larger houses and higher prices for smaller houses in the neighbourhood, and/or longer and shorter marketing times respectively.
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Journal article London Journal article L135133 (Browse shelf(Opens below)) 1 Available 135133-1001

Examines the issue of which the market values more highly: the largest house in a neighbourhood of small houses or the smallest house in a neighbourhood of large houses. Using house sales data from one local government area, this problem is looked at in terms three hypotheses: atypicality, the conspicuous consumption effect and the tax capitalization effect. Concludes that of these theories, the estimates are consistent with the fiscal capitalization theory, which leads to lower prices for larger houses and higher prices for smaller houses in the neighbourhood, and/or longer and shorter marketing times respectively.