BUSI 300 - Terms and Definitions

A1. Agglomeration Economies

A5. Reservation Price

A7. Market Area*

A10. Central Place Theory

A1. The economic benefits businesses receive by locating close together, such as lower transportation costs, shared suppliers, access to workers, and easier networking.

A5. The maximum total amount a consumer is willing to pay for a good or service, including transportation costs.

A7. The geographic area where a business's customers live and from which the business attracts customers.

A10. A theory explaining the sizes and functions of cities based on the goods and services they provide and the market areas those activities require.

B1. Urban Economics*

B3. Spatial Concentration

B4. Urban Spatial Structure

B5. Density

B6. Accessibility

B1. The study of how economic activities, people, businesses, and government policies affect the development and operation of cities.

B3. The clustering of people, businesses, and economic activities close together in a particular geographic area.

B4. The way buildings, people, jobs, land uses, and economic activities are arranged throughout a city.

B5. The number of people, jobs, or other activities within a given area of land.

B6. How easily people can reach jobs, stores, schools, parks, and other destinations from a particular location.

C7. City Hierarchy

C9. Normal Profit*

C10. Perfect Competition****

C7. The idea that cities differ in size and economic functions, with larger cities generally providing a greater variety of specialized goods and services than smaller cities.

C9. The minimum amount of profit a business needs to earn to remain competitive in the market.

C10. A market with many buyers and sellers, identical products, no barriers to entry or exit, and prices determined by supply and demand.

D7. Principle of Substitution (appraisal)

D7. The principle that the price of an equally desirable alternative property tends to establish a limit on a property's value.

E3. Comparative Statics

E6. Welfare Analysis

E7. Consumer Surplus*

E8. Producer Surplus*

E10. Fundamental Theorem of Welfare Economics

E3. The study of how equilibrium prices and quantities change when economic conditions change.

E6. The study of how different market outcomes affect the economic well-being of consumers, producers, and society.

E7. The difference between the maximum amount a consumer is willing to pay for a good or service and the amount they actually pay.

E8. The difference between the amount a producer receives for a good or service and the minimum amount they would be willing to accept.

E10. The principle that under perfect competition, individuals pursuing their own interests produce an efficient allocation of resources that maximizes society's economic welfare.

F1. Deadweight Loss

F2. Single Tax on Land

F3. Market Failure

F4. Externality

F5. Negative Externality

F6. Positive Externality

F7. Economic Variables

F8. Scarcity

F9. Homogeneous Products / Homogeneous Goods

F10. Price Taker

F1. The loss of total economic welfare that occurs when a market does not produce the efficient quantity of goods or services.

F2. A theory proposing that the government should finance its activities through a single tax on the unimproved value of land.

F3. A situation where a market fails to allocate resources efficiently or maximize total consumer and producer surplus.

F4. A cost or benefit affecting someone who is not directly involved in the economic activity that creates it.

F5. A harmful effect that an individual's or business's actions have on others who are not directly involved.

F6. A beneficial effect that an individual's or business's actions have on others who are not directly involved.

F7. Factors that influence the economy and real estate markets, such as land supply, labour availability, interest rates, and inflation.

F8. The condition where resources are limited compared to people's needs and wants.

F9. Goods or services that are identical in the eyes of consumers.

F10. A buyer or seller who has no individual influence over the market price and must accept the existing price.

H6. Elastic Demand or Supply*

H7. Inelastic Demand or Supply*

H6. A situation where the percentage change in quantity is greater than the percentage change in price.

H7. A situation where the percentage change in quantity is smaller than the percentage change in price.

I1. Economic Efficiency

I2. Tax Wedge

I3. Tax Incidence

I4. Monopoly

I5. Asymmetric Information

I6. Adverse Selection

I7. Public Goods

I8. Private Costs

I9. External Costs

I10. Social Costs

I1. A situation where resources are allocated to maximize total economic welfare, without avoidable waste.

I2. The difference between the price buyers pay and the amount sellers receive after a tax is imposed.

I3. The way the economic burden of a tax is distributed between buyers and sellers.

I4. A market situation where a firm has enough market power to influence the price of its product, potentially charging higher prices and producing less.

I5. A situation where some participants in a market have more or better information than others.

I6. A market problem where unequal information can cause lower-quality products to dominate because buyers cannot reliably distinguish them from higher-quality products.

I7. Goods or services that markets may have difficulty providing because it is difficult or impossible to charge individual users for their use.

I8. Costs paid directly by an individual or business as a result of their economic activities.

I9. Costs imposed on other individuals or businesses who are not directly involved in the activity.

I10. The total costs to society from an economic activity, including both private and external costs.

J1. Private Benefits

J2. External Benefits

J3. Social Benefits

J4. Marginal External Cost (MEC)

J5. Marginal Social Cost (MSC)

J6. Marginal External Benefit (MEB)

J7. Marginal Social Benefit (MSB)

J8. Corrective Tax

J9. Corrective Subsidy

J10. Internalizing an Externality

J1. Benefits received directly by the individual or business carrying out an economic activity.

J2. Benefits received by others who are not directly involved in the economic activity.

J3. The total benefits an economic activity provides to society, including private and external benefits.

J4. The additional cost imposed on others when one more unit of a good or service is produced or consumed.

J5. The total additional cost to society of producing one more unit, including marginal private and external costs.

J6. The additional benefit received by others when one more unit of a good or service is produced or consumed.

J7. The total additional benefit to society from one more unit of an activity, including marginal private and external benefits.

J8. A tax used to reduce activities that create negative externalities by making individuals or businesses account for the costs imposed on others.

J9. Financial assistance used to encourage activities that create positive externalities by rewarding the benefits they provide to others.

J10. Making individuals or businesses account for the external costs or benefits of their actions when making economic decisions.

K2. New Economic Geography

K4. Location Quotient (LQ)

K2. An economic theory that explains how economies of scale, transportation costs, and the movement of workers and businesses influence the location and growth of cities and regions.

K4. A measure of how concentrated an industry is in a particular region compared to the national average, calculated by dividing the industry's regional employment percentage by its national employment percentage.

L3. Convergence (regional labor markets)

L8. Gravity Law of Market Potential

L9. Cumulative Causation

L10. Regional Economics

L3. The tendency for differences in wages, employment opportunities, and economic conditions between regions to decrease over time as workers migrate between them.

L8. A model used to evaluate potential business locations by considering the purchasing power of nearby markets and their distances from the location.

L9. A self-reinforcing process where businesses attract workers, workers attract more businesses, and economic activity continues to concentrate and grow in a particular region.

L10. The study of how economic activities, industries, employment, and population are distributed across regions and how regional economies grow or decline.

M1. Spatial Distribution of Economic Activity

M2. Regional Specialization

M3. Transportation Costs

M4. Service-Producing Sector

M5. Goods-Producing Sector

M6. Economic Base

M7. Import Substitution

M8. Interprovincial Trade

M9. Interprovincial Migration

M10. Net Interprovincial Migration

M1. The geographic arrangement of businesses, employment, production, and other economic activities across different locations.

M2. When a region concentrates a relatively large share of its economic activity or employment in certain industries compared to other regions.

M3. The expenses associated with moving goods, materials, or people between different locations, which influence where businesses choose to operate.

M4. The part of the economy that provides services rather than physical goods, including healthcare, education, retail, finance, and professional services.

M5. The part of the economy that produces physical products, including manufacturing, construction, agriculture, forestry, and resource extraction.

M6. The group of basic or export industries that bring income into a region and help support its overall economic activity.

M7. The process of replacing goods or services previously imported from other regions with products produced locally.

M8. The buying and selling of goods and services between different provinces within the same country.

M9. The movement of people from one province to another, often influenced by differences in wages, job opportunities, housing costs, and quality of life.

M10. The difference between the number of people moving into a province from other provinces and the number leaving for other provinces.

N4. Production Function**

N5. Labour Demand**

N6. Labour Supply**

N8. Profit Maximization**

N4. An equation showing the relationship between the inputs used by a business, such as labour, and the amount of output it produces.

N5. The amount of labour businesses are willing to hire at different wage levels, based on the value workers contribute to production.

N6. The amount of labour workers are willing to provide at different wage levels, influenced by income opportunities and personal preferences.

N8. The process of making business decisions that produce the greatest possible difference between total revenue and total costs.

O1. Short-Run Effects

O2. Long-Run Effects

O3. Economic Shock

O4. Regional Economic Growth

O5. Regional Economic Decline

O6. Regional Real Estate Demand

O7. Multiplier Effect

O8. Economic Leakage

O9. Optimal Firm Location

O10. Classical Location Theory

O1. The immediate economic changes that occur before workers have enough time to move between regions in response to changing wages or employment opportunities.

O2. The economic changes that occur after workers have had time to relocate between regions, allowing wages and employment levels to adjust.

O3. An unexpected change in economic conditions, such as a sudden increase or decrease in the price of an important regional product, that affects employment, wages, and economic growth.

O4. An increase in economic activity within a region, often involving greater production, employment, income, and population.

O5. A decrease in economic activity within a region, often associated with falling employment, reduced income, and population out-migration.

O6. The demand for property within a region, influenced by economic conditions, employment opportunities, income levels, and population growth.

O7. The process through which an initial increase in spending generates additional rounds of spending and income throughout a regional economy.

O8. Money that leaves the local spending cycle through savings, taxes, or purchases of goods and services from outside the region, reducing the multiplier effect.

O9. The geographic location that allows a business to maximize profits or minimize costs based on factors such as transportation, labour, resources, and market accessibility.

O10. An economic approach explaining business location decisions primarily through transportation costs and access to raw materials and markets.

P1. Input Sources (for business)

P2. Market Access*

P6. Increasing Returns to Scale*

P7. External Scale Economies / External Economies of Scale*

P8. Economic Integration (regions)

P9. Regional Development Model

P1. The locations where businesses obtain the labour, raw materials, energy, and other resources needed for production.

P2. The ease with which a business can reach potential customers and markets, influenced by distance, transportation costs, and purchasing power.

P6. A situation where increasing production inputs results in a proportionally larger increase in output, allowing average production costs to decrease.

P7. Cost advantages businesses receive because other businesses and economic activities are concentrated nearby, rather than because of the firm's own size.

P8. The process of economies or regions becoming more connected through trade, labour movement, and business activity.

P9. An economic model used to explain how changes in production, prices, employment, wages, and migration influence the growth or decline of regions.

Q1. Metropolitan Area / Urban Area

Q2. Census Metropolitan Area (CMA)

Q3. Economic City

Q4. Urbanization Economy

Q5. Localization Economy

Q6. Optimal City Size

Q7. Equilibrium City Size

Q8. Hinterland

Q9. Utility of City Residents

Q10. System of Cities

Q1. A geographic area consisting of a central city and surrounding communities that are economically and socially connected.

Q2. As defined in the chapter, an urban core with a population of at least 100,000 people, together with surrounding areas that have strong social and economic connections to the urban core.

Q3. A geographic concentration of economic activity where businesses and households are clustered together and land is used intensively.

Q4. The economic benefits businesses receive from locating in larger cities, where greater population and overall economic activity increase productivity.

Q5. The economic benefits businesses receive from locating near other firms in the same or related industries, allowing them to share specialized workers, suppliers, and knowledge.

Q6. The population level at which a city's residents receive the greatest overall benefit or satisfaction, based on the difference between wages and living costs.

Q7. The population level at which people have no further incentive to migrate into a city because the benefits of living there equal those available outside the city.

Q8. The area outside a metropolitan region, often consisting of agricultural or rural land.

Q9. The level of satisfaction or economic benefit residents receive from living in a city, measured in the chapter as wages minus the cost of living.

Q10. A network of cities that specialize in different industries and trade with one another, allowing each city to benefit from its particular economic strengths.

R2. Residual Method / Developer's Method / Residual Method of Land Appraisal

R2. A real estate valuation method that estimates the value of land by subtracting development costs and developer's profit from the expected value of the completed project.

S1. Labour Productivity

S2. Intra-Industry Specialization

S3. Labour Market Economies

S4. Knowledge Spillovers

S5. Public Intermediate Inputs

S6. Agglomeration Cluster

S7. Marginal Benefit of Concentration

S8. Marginal Cost of Concentration

S9. Cost of Living

S10. Urban Congestion

S1. The amount of goods or services produced by workers over a given period or per unit of labour.

S2. The process where businesses within the same industry specialize in particular tasks or products, improving productivity and efficiency.

S3. The advantages businesses receive from locating in areas with large pools of skilled workers, making it easier to find employees with the required abilities.

S4. The benefits businesses receive when information, ideas, innovations, and technical knowledge spread between nearby firms.

S5. Shared services or infrastructure that support business production, particularly when designed to meet the needs of a specific industry.

S6. A geographic concentration of businesses and economic activities that benefit from being located near one another.

S7. The additional economic benefit gained when another person or business becomes part of an urban concentration.

S8. The additional costs created by adding more people or businesses to a city, such as increased congestion, pollution, and living expenses.

S9. The expenses associated with living in a particular city, including housing, transportation, goods, and services.

S10. The overcrowding of transportation systems, infrastructure, or other urban resources as population and economic activity increase.

T1. Urban Migration

T2. Negative Externality of Migration

T3. Excessive City Size

T4. Geographic Constraints

T5. City Specialization

T6. Individual Migration Decisions

T7. Land Developer

T8. Land Servicing

T9. Infrastructure Development

T10. Entrepreneurial Incentive

T1. The movement of people from rural areas or other regions into cities, often motivated by better wages, employment opportunities, and living conditions.

T2. The harmful effect that additional migrants may impose on existing city residents by increasing congestion and living costs without considering those impacts in their decisions.

T3. A situation where a city's population grows beyond its optimal level, causing the additional costs of concentration to outweigh the additional benefits.

T4. Natural physical features, such as mountains, oceans, and rivers, that limit the amount of land available for urban development.

T5. The process through which a city concentrates its economic activity in particular industries to benefit from localization economies.

T6. The choices people make about moving to a city based on their expected personal benefits, such as wages and living costs.

T7. An individual or business that purchases, improves, subdivides, or redevelops land to create properties and earn a profit.

T8. The process of providing land with infrastructure and utilities, such as roads, water, and sewer systems, to make it suitable for development.

T9. The construction of transportation networks, utilities, and public facilities that support city growth and influence property values.

T10. The financial reward needed to encourage a developer or investor to undertake a project and accept its associated risks.

U1. Residual Land Value (development)

U3. Economic Profit*

U5. Leftover Principle

U7. Spatial Equilibrium*

U1. The amount remaining after subtracting all development costs and developer's profit from the expected market value of a completed development, representing the maximum amount a developer can pay for the land.

U3. The amount remaining after subtracting all costs of production, including opportunity costs, from total revenue.

U5. The principle that after all non-land production costs are paid, any remaining revenue goes toward land rent until economic profit is eliminated.

U7. A situation where differences in land rents offset the advantages of different locations, leaving businesses with no incentive to relocate.

V1. Principle of Anticipation

V3. Extensive Margin

V4. Von Thünen Model

V9. Excess Economic Profit

V1. The principle that a property's current value depends on the future economic benefits or income it is expected to provide.

V3. The outer boundary of agricultural land in the von Thünen model, beyond which farming is no longer economically profitable.

V4. An economic model explaining how transportation costs and bid rents determine the location of agricultural activities and land uses around a central market.

V9. Profit earned above the amount needed to cover all costs, including opportunity costs and normal returns.

W1. Implicit Rent / Imputed Rent

W4. Total Cost***

W5. Average Total Cost (ATC)

W7. Long-Run Competitive Equilibrium

W9. Impact Fees

W10. Land Servicing Costs

W1. The estimated cost of occupying a property that you own, including the opportunity cost of using it rather than renting it to someone else.

W4. The combined cost of all resources used in production, including fixed costs, variable costs, and relevant opportunity costs.

W5. The total cost of producing goods or services divided by the number of units produced.

W7. A market condition where competition eliminates excess economic profits and firms earn only normal profit.

W9. Charges imposed on developers to help pay for public infrastructure improvements made necessary by new development.

W10. The expenses involved in preparing land for development, including installing utilities, roads, and other required infrastructure.

X2. Net Revenue (developer)

X8. Central Market (urban)

X9. Marginal Transportation Cost (producer)

X2. The revenue remaining after deducting specified expenses, such as the marketing costs used in the chapter's development example.

X8. The main location where goods are sold or exchanged, serving as the reference point for transportation costs and land rents in the von Thünen model.

X9. The additional cost of transporting one unit of output over one additional unit of distance.

Y1. Bid Rent Gradient

Y2. Land Use Boundary

Y3. Upper Envelope of Bid Rent Curves

Y4. Non-Land Production Costs

Y5. Price of Output

Y6. Land Use Intensity

Y7. Capital-to-Land Substitution

Y8. Convex Bid Rent Curve

Y9. Ground Lease

Y10. Scope of Work

Y1. The rate at which bid rent changes with distance from the market, generally declining as transportation costs increase.

Y2. The location where competing bid rent curves intersect, marking the point where one land use becomes more valuable than another.

Y3. The highest portions of competing bid rent curves, showing the equilibrium land rent and highest-value land use at each location.

Y4. The expenses involved in producing goods or services that do not include land rent, such as labour, materials, and equipment costs.

Y5. The selling price received for a unit of a good or service, which helps determine the revenue available to pay production costs and land rent.

Y6. The amount of development or productive activity occurring on a given area of land, generally increasing when land is more expensive.

Y7. The process of using more building capital and less land to produce real estate services, such as constructing taller buildings on expensive downtown land.

Y8. A bid rent curve that declines steeply near the market and becomes flatter farther away, reflecting businesses' ability to substitute other inputs for expensive land.

Y9. A lease that gives a tenant the right to use land for a specified period, often over the long term, while ownership of the land remains with the landlord.

Y10. The agreed-upon extent of research, analysis, and procedures required to complete a real estate appraisal assignment.

Z1. Monocentric City*

Z5. Utility Function

Z1. A simplified model of urban development where a city has one central area containing businesses and employment, with residents living in surrounding areas and commuting to the centre for work.

Z5. An equation describing the level of satisfaction a household receives from consuming different combinations of land and other goods.

AA3. Urban Boundary / City Boundary*

AA10. Land Consumption*

AA3. The outer edge of a city where residential bid rent equals agricultural land rent, marking the point where urban land use ends and agricultural land begins.

AA10. The amount of residential land occupied or used by a household, generally influenced by land prices, income, and location.

AB1. Non-Land Goods

AB2. Income Constraint

AB3. Utility Maximization

AB4. Tangency Point

AB5. Marginal Commuting Cost

AB6. Net Income After Commuting

AB7. Residential Land Rent Gradient

AB8. Linear Bid Rent Function

AB9. Perfectly Inelastic Land Demand

AB10. Land Demand

AB1. Goods and services consumed by households other than land or housing, such as food, clothing, entertainment, and recreation.

AB2. The limitation on household spending caused by having a fixed amount of income available to purchase land and other goods.

AB3. The process of selecting the most satisfying combination of goods and services that a household can afford.

AB4. The point where a budget line touches an indifference curve and both have the same slope, representing the household's optimal consumption choice.

AB5. The additional cost a household incurs by living one more unit of distance away from the city centre.

AB6. The amount of income a household has remaining after paying its commuting expenses, which can then be spent on land and other goods.

AB7. The rate at which residential land rent changes with distance from the city centre, generally decreasing as commuting distance increases.

AB8. A straight-line relationship showing land rent decreasing at a constant rate as distance from the city centre increases, assuming fixed lot sizes and commuting costs per kilometre.

AB9. A situation where households occupy a fixed amount of land regardless of changes in its price.

AB10. The total amount of land households or businesses are willing and able to occupy at different prices.

AC2. Land Market Equilibrium*

AC3. Aggregate Demand for Residential Land (model)

AC4. Opportunity Cost of Land (monocentric model)

AC2. A situation where land demand equals land supply and land is allocated to the highest bidders.

AC3. The total amount of land required to house all households in a city, calculated in the fixed-lot-size model by multiplying the number of households by the amount of land each occupies.

AC4. The value of the next best alternative use of land, represented by agricultural rent in the monocentric city model.

AD1. Lot Size Effect

AD10. Shipping Costs (Urban context)

AD1. The tendency for higher-income households to demand larger residential lots, which can make their bid rent curves flatter than those of lower-income households.

AD10. The expenses businesses incur when transporting finished products from their production locations to the central export terminal.

AE1. Firm Location Decision****

AE3. Competing Urban Land Uses (how)

AE5. Central Density

AE6. Density Gradient*

AE7. Exponential Population Density Function

AE8. Mean Optimum Commute?

AE9. Suburbanization

AE10. Central City

AE1. The choice of where a business operates based on transportation costs, land rents, production costs, and expected profitability.

AE3. Different activities, such as manufacturing, commercial operations, and housing, competing for land according to their maximum bid rents.

AE5. The estimated population or employment density at the city centre, representing the number of people or jobs per unit of land at that location.

AE6. A measure of how quickly population or employment density decreases as distance from the city centre increases.

AE7. An equation describing how population density decreases with distance from the city centre, using central density and the density gradient.

AE8. The average distance of all homes from the city centre minus the average distance of all jobs from the city centre, used in the chapter's commuting model.

AE9. The gradual decline in the share of a city's population, employment, and economic activity located in the city centre as development spreads into surrounding suburban areas.

AE10. The political or municipal jurisdiction that contains a metropolitan area's downtown or central business district.

AF1. Natural Evolution View (of saburbanization)

AF2. Employment Decentralization

AF3. Fiscal-Social Problem / Flight from Blight (theory)

AF4. Edge City

AF5. Net Marginal Value of Labour (employment center)

AF8. Residential Property Value Gradient*

AF1. A theory explaining suburbanization as the result of rising household incomes and falling transportation costs, allowing people to move farther from downtown and purchase larger or better housing.

AF2. The movement or growth of jobs and businesses away from the traditional city centre into suburban locations.

AF3. A theory suggesting that suburbanization is encouraged by problems in central cities, such as high taxes, poor public services, crime, congestion, pollution, and other social concerns.

AF4. A large suburban business and commercial centre with substantial office and retail space, more jobs than bedrooms, a distinct identity, and an area that was not previously urbanized.

AF5. The additional economic value created by adding another worker to an employment centre after subtracting additional costs such as congestion, pollution, and other disadvantages.

AF8. The rate at which residential property values change with distance or travel time from the city centre.

AG1. Dependent Variable

AG2. Explanatory Variable

AG3. Redeveloped Property

AG4. Compact City

AG5. Dispersed City

AG6. Flattening of the Density Function

AG7. Residential Suburbanization

AG8. Mass Transit

AG9. Actual Commuting Distance

AG10. Wasteful Commuting

AG1. The variable being studied or predicted in a statistical analysis, such as property value.

AG2. A factor used to explain changes in another variable, such as commuting time or property size when estimating property values.

AG3. A property that has been purchased and then substantially rebuilt or replaced, often allowing researchers to estimate land value separately from the value of existing buildings.

AG4. A city where people, businesses, and economic activities are concentrated within a relatively small geographic area, typically with a steep density gradient.

AG5. A city where people and economic activities are spread across a larger geographic area, typically with a flatter density gradient.

AG6. A decrease in the rate at which population or employment density falls with distance, indicating that a city is becoming more suburbanized.

AG7. The movement or growth of households and residential development away from downtown into surrounding suburban areas.

AG8. Public transportation systems capable of moving large numbers of people, such as buses, trains, and subways, which can influence commuting patterns and nearby property values.

AG9. The distance workers actually travel between their homes and workplaces, which may be substantially greater than the distance predicted by simplified urban economic models.

AG10. Commuting that exceeds the minimum travel required by the spatial arrangement of homes and jobs, illustrating inefficiencies or limitations in urban location patterns.

AH1. Housing Relocation Costs

AH2. Employment Density Gradient

AH3. Manufacturing Decentralization

AH4. Technological Change

AH5. Service-Sector Centralization

AH6. Face-to-Face Contact

AH7. Boomer Edge City

AH8. Greenfield Edge City

AH9. Uptown Edge City

AH10. Employment Cluster

AH1. The financial and other costs of moving homes, which can prevent households from relocating closer to work even when doing so would reduce commuting expenses.

AH2. The rate at which the concentration of jobs decreases as distance from the city centre increases.

AH3. The movement of manufacturing activities from central urban locations into suburban areas, encouraged by improved transportation, cheaper land, and changing production technology.

AH4. Improvements in transportation or production methods that alter the costs and benefits of different business locations, influencing urban development patterns.

AH5. The tendency for certain service businesses, particularly finance, insurance, and professional offices, to remain concentrated downtown because of the advantages of proximity to related firms.

AH6. Direct personal interaction between businesses and workers that encourages certain industries to remain clustered in central locations.

AH7. A type of edge city that develops gradually around an existing shopping mall, major highway interchange, or other suburban activity centre.

AH8. A type of edge city created through planned development on previously undeveloped land, usually near the suburban fringe.

AH9. A type of edge city that develops around an existing historical town or activity centre, transforming it into a larger suburban employment and commercial location.

AH10. A geographic concentration of jobs and businesses that benefit from being located close together.

AI1. Beltway / Circumferential Highway

AI2. Suburban Exporter

AI3. Suburban Bid Rent Function

AI4. Employment Subcentre Formation

AI5. Fixed Infrastructure Costs

AI6. Sunk Costs

AI7. Congestion Costs

AI8. Disamenities

AI9. Node

AI10. Open Space

AI1. A major road that travels around a city and connects to other transportation routes, providing suburban businesses with access to regional and national markets.

AI2. A business located outside the traditional city centre that transports its products to outside markets using suburban transportation facilities, such as a beltway.

AI3. An equation showing how much a suburban business is willing to pay for land at different distances from a highway or other export facility, with bid rent highest near the facility.

AI4. The process through which new concentrations of jobs develop outside downtown when the economic benefits of establishing another employment centre exceed its costs.

AI5. The initial costs required to establish an employment location, such as constructing roads, utilities, and other facilities needed to support business activity.

AI6. Costs that have already been incurred and cannot be recovered, such as certain expenses involved in establishing an existing downtown employment centre.

AI7. The additional expenses and productivity losses created when too many people or businesses use the same transportation systems or urban resources.

AI8. Undesirable characteristics of a location, such as pollution, traffic congestion, noise, and overcrowding, that reduce its attractiveness or economic benefits.

AI9. A concentration of properties with similar or complementary uses, such as an office park, industrial park, retail district, or downtown business cluster.

AI10. Land that remains largely undeveloped, including parks, natural areas, and agricultural land, which can provide environmental, recreational, and aesthetic benefits.

AJ6. Urban Growth Boundary (UGB)

AJ9. Incremental Growth (Urban)

AJ10. Open City

AJ6. A planning restriction that limits urban development beyond a designated geographic boundary to control outward expansion and urban sprawl.

AJ9. The process through which a city expands gradually by adding new development at its outer boundary as population increases.

AJ10. A city whose population can change through migration as people move into or out of the area in response to economic conditions.

AK1. Myopic Expectations

AK2. Perfect Foresight

AK3. Redevelopment

AK4. Speculation

AK5. Leapfrogging

AK6. Discontinuous Development

AK7. Growth Premium

AK8. Value of Accessibility

AK9. Cost of Conversion

AK10. Land Development with Foresight

AK1. The assumption that households or landowners cannot predict future economic conditions and make decisions based only on current circumstances.

AK2. The assumption that households or landowners have complete knowledge of future economic conditions and use that information when making present decisions.

AK3. The process of demolishing or replacing existing buildings with new development when the value of the new property exceeds the value of the existing property by more than the cost of demolition.

AK4. The practice of withholding land from current development in anticipation of a more valuable future use.

AK5. A development pattern where new construction skips over undeveloped parcels of land, creating gaps between developed areas.

AK6. A pattern of urban growth where developed areas are separated by vacant or undeveloped land rather than forming one continuous built-up area.

AK7. The portion of a property's current value that reflects the present value of expected future increases in land rent caused by urban growth.

AK8. The portion of land value that reflects the present value of location rent, representing the benefits of convenient access to employment and other activities.

AK9. The expenses required to change land from agricultural to urban use, including the costs of servicing land and providing infrastructure.

AK10. The process of making development decisions based on expected future economic conditions to maximize the present value of future land rents.

AL1. Spatial Growth of a City

AL2. Urban Fringe

AL3. Historical Development Patterns

AL4. Development Timing

AL5. Discrete Time Periods

AL6. Household Budget Constraint

AL7. Density Function

AL8. Sawtooth Density Pattern

AL9. Historical Lot Sizes

AL10. Fixed Development

AL1. The geographic expansion of a city as new residential, commercial, and other developments are added to previously undeveloped land.

AL2. The outer edge of a city where urban development meets agricultural or undeveloped land and where much new development occurs.

AL3. The arrangement and density of buildings and neighbourhoods resulting from past development decisions and economic conditions.

AL4. The decision about when land should be developed or redeveloped to produce the greatest economic value.

AL5. Separate intervals of time used in economic models, where economic conditions are assumed to remain constant within each period but may change between periods.

AL6. The limitation on household spending determined by income after accounting for commuting costs, which restricts the amount available for land and other goods.

AL7. An equation or graph showing how population or structural density varies with distance from the city centre.

AL8. A pattern of population density where each new period of development creates a separate density segment, reflecting the economic conditions that existed when the land was originally developed.

AL9. The sizes of residential lots established when land was first developed, which may remain unchanged even when economic conditions change.

AL10. The assumption that once land has been developed, its lot sizes and structures remain unchanged in future periods.

AM3. Rent for Newly Developed Land

AM4. Rent for Existing Development

AM5. Redevelopment Boundary

AM7. Development Value*

AM8. Property Redevelopment Decision*

AM3. The maximum rent that land can earn when it is developed according to current economic conditions and preferences.

AM4. The rent that previously developed land can earn based on its existing buildings, historical lot sizes, and current market conditions.

AM5. The location where the value of new development becomes equal to the value of existing development, separating areas where redevelopment is economically attractive from those where existing uses remain preferable.

AM7. The economic value of a property based on its current or potential use, including the benefits expected from its buildings and land.

AM8. The choice to replace an existing structure when the additional value created by redevelopment exceeds the costs involved.r.

AN1. Land Withholding*

AN4. Investment Risk*

AN6. Marginal Benefit of Conversion (Urban Land)*

AN7. Marginal Cost of Conversion*

AN1. The decision to keep land vacant or undeveloped temporarily because its expected future use may be more valuable than developing it immediately.

AN4. The possibility that future economic conditions, development costs, or property income will differ from expectations, affecting the profitability of an investment.

AN6. The additional economic benefit created by converting another unit of land from agricultural to urban use.

AN7. The additional economic cost of converting another unit of agricultural land into urban land, including servicing costs and the value of the previous use.

AO1. Growth Expectations

AO2. Future Rent Increases

AO3. Land Price Components

AO4. Inter-Metropolitan Property Price Differences

AO5. Real Income

AO6. Land Supply Restrictions

AO7. Point-in-Time Appraisal

AO8. Transportation Economics

AO9. Modal Split

AO10. Out-of-Vehicle Time

AO1. Predictions about future population, economic activity, and property demand that influence current land prices and development decisions.

AO2. Expected growth in rental income resulting from rising demand for urban land as a city becomes larger.

AO3. The different sources of land value identified in the chapter: accessibility value, conversion costs, agricultural land value, and the growth premium.

AO4. Differences in property values between cities, influenced by population size, expected growth, income levels, amenities, and land supply.

AO5. Income adjusted for purchasing power, which influences household demand for housing and land.

AO6. Government regulations or physical limitations that reduce the amount of land available for urban development, potentially increasing property prices.

AO7. A property valuation that estimates market value as of a specific date, reflecting the market conditions relevant to that time.

AO8. The study of how transportation systems, travel costs, congestion, and government policies influence economic decisions, resource allocation, and urban development.

AO9. The percentage of trips made using different forms of transportation, such as private automobiles, public transit, walking, and cycling.

AO10. The time travellers spend walking to transportation stops, waiting for vehicles, or travelling between stops and their final destinations, rather than actually riding in a vehicle.

AP1. Cross-Price Elasticity of Demand

AP3. Road Congestion

AP4. Road Capacity

AP5. Peak-Load Problem

AP6. Traffic Volume

AP7. Speed-Flow Curve

AP8. Hypercongestion

AP9. Bottleneck Model of Congestion

AP1. A measure of how much demand for one good or service changes in response to a change in the price of another good or service, such as how automobile use responds to changes in transit fares.

AP3. A situation where traffic volume exceeds a road's capacity, causing slower travel speeds, longer travel times, and increased transportation costs.

AP4. The number of vehicles that can use a road without causing congestion or increasing travel time above its free-flow level.

AP5. A situation where transportation facilities experience heavy demand and congestion during certain periods but have unused capacity at other times, making higher prices during peak periods potentially more efficient.

AP6. The number of vehicles passing a particular point on a road during a given period, usually measured in vehicles per hour.

AP7. A graph showing the relationship between traffic volume and travel speed, generally indicating that speeds decrease as traffic volume increases beyond certain levels.

AP8. A severe traffic condition where roads become so overcrowded that speeds fall dramatically and the number of vehicles successfully passing through the road decreases.

AP9. A model explaining how traffic queues form when the number of vehicles attempting to pass through a restricted point, such as a bridge or tunnel entrance, exceeds its capacity.

AQ1. Private Cost of Auto Travel**

AQ2. Congestion-Independent Costs

AQ3. Congestion-Dependent Costs

AQ4. Total Cost of Road Use

AQ5. Equilibrium Traffic Volume*

AQ6. Socially Optimal Traffic Volume*

AQ8. Downs' Law / Law of Highway Congestion

AQ9. Latent Travel Demand

AQ10. Road Pricing

AQ1. The total cost an individual driver personally experiences when using a vehicle, including monetary expenses and the opportunity cost of travel time.

AQ2. Transportation expenses that exist even when roads are not congested, such as vehicle ownership, maintenance, insurance, licensing, and normal travel expenses.

AQ3. Additional transportation expenses caused by increased traffic, such as longer travel times and greater fuel consumption from idling or slow movement.

AQ4. The combined private and external costs associated with automobile travel, representing the full cost of road use to society.

AQ5. The amount of road use that occurs when individuals make travel decisions based on their own private costs and benefits, without necessarily considering external costs.

AQ6. The level of road use that maximizes society's total economic benefit by requiring drivers to consider both their private costs and the external costs imposed on others.

AQ8. The principle that traffic congestion tends to increase until it fills available road capacity, meaning expanding roads often attracts additional traffic rather than permanently reducing congestion.

AQ9. The demand for road travel that is discouraged by existing congestion but emerges when road capacity increases or travel conditions improve.

AQ10. A transportation policy that charges drivers for using roads, bridges, or tunnels, potentially varying charges according to congestion, location, or time of day.

AR1. Environmental Externality

AR2. Supply-Side Transportation Policies

AR3. Demand-Side Transportation Policies

AR4. Urban Transportation

AR5. Work Trips / Commuting Trips

AR6. Non-Work Trips

AR7. Peak Travel Period

AR8. Off-Peak Travel Period

AR9. Free-Flow Speed

AR10. Traffic Bottleneck

AR1. The environmental costs imposed on society by an activity, such as the air pollution, greenhouse gas emissions, and noise created by automobile use.

AR2. Government policies aimed at increasing or improving transportation capacity, such as building roads, expanding public transit, or improving traffic management.

AR3. Government policies aimed at influencing how much, when, or where people travel, such as congestion pricing, parking fees, gasoline taxes, and staggered work hours.

AR4. The movement of people, goods, and services within cities using roads, public transit, walking, cycling, and other transportation systems.

AR5. Journeys made between an individual's home and workplace, usually concentrated during morning and evening peak periods.

AR6. Travel undertaken for purposes other than commuting, such as shopping, recreation, entertainment, and personal activities.

AR7. The time of day when transportation demand is highest, typically during morning and evening commuting hours.

AR8. The time of day when transportation demand is lower and roads generally have more unused capacity.

AR9. The speed vehicles can travel on a road when traffic is light enough that congestion does not affect travel time.

AR10. A location where road capacity is restricted, causing vehicles to slow down or form queues when demand exceeds available capacity.

AS1. Traffic Queue

AS2. Travel Time Function

AS3. Monetary Costs of Automobile Travel

AS4. Opportunity Cost of Travel Time

AS5. In-Vehicle Time

AS6. Automobile and Transit Substitution

AS7. Travel Demand Curve

AS8. Willingness to Pay for Travel

AS9. Marginal Benefit of Road Use

AS10. Negative Externality of Road Use

AS1. A line of vehicles waiting to pass through a congested road section or bottleneck because traffic demand exceeds the rate at which vehicles can move through it.

AS2. An equation or graph showing how the time required to travel along a road changes as traffic volume increases.

AS3. The direct financial expenses associated with driving, including fuel, insurance, maintenance, parking, licensing, and tolls.

AS4. The value of the work, leisure, or other activities a person gives up by spending time travelling.

AS5. The amount of time a traveller spends inside a vehicle while making a trip, excluding time spent walking to stops or waiting for transportation.

AS6. The extent to which travellers switch between private automobiles and public transportation when costs, travel times, or service conditions change.

AS7. A graph showing the relationship between the cost of travel and the number of trips individuals are willing to make, generally indicating that travel demand decreases as costs increase.

AS8. The maximum amount a traveller is willing to spend on a trip based on the benefits they expect to receive.

AS9. The additional benefit society or an individual receives from one more trip being taken on a road.

AS10. The harmful effects drivers impose on others, including additional congestion, pollution, noise, and increased travel times.

AT3. Economic Efficiency in Transportation (situation)

AT8. Shoulder Pricing

AT9. Electronic Road Pricing (ERP)

AT10. Area Licensing Scheme (ALS)

AT3. A situation where transportation resources are used to maximize society's total economic benefits while accounting for private and external costs.

AT8. A congestion pricing system where tolls gradually increase before peak travel periods and decrease afterward to spread traffic demand more evenly throughout the day.

AT9. A system that automatically charges drivers for road use through electronic technology, with tolls potentially varying by location, time of day, and traffic conditions.

AT10. A congestion pricing system originally introduced in Singapore that required drivers to purchase permission to enter certain central-city areas during peak periods.

AU1. Congestion Charge Zone

AU2. Toll Road

AU3. Private Toll Road

AU4. Road Privatization

AU5. High-Occupancy Vehicle (HOV) Lane

AU6. Parking Surcharge

AU7. Gasoline Tax

AU8. Pollution Tax

AU9. Air Pollution from Transportation

AU10. Automobile Emissions

AU1. A designated geographic area where drivers must pay a fee to enter or travel during specified periods to reduce traffic congestion.

AU2. A road or highway that requires users to pay a fee, which may be used to finance infrastructure or influence traffic demand.

AU3. A transportation facility operated by a private business that charges users for access and may adjust tolls to manage demand or generate revenue.

AU4. The transfer of ownership, operation, or management of road infrastructure to private businesses that may charge users and operate facilities for profit.

AU5. A traffic lane reserved for vehicles carrying a minimum number of passengers, intended to encourage carpooling and improve the efficiency of road use.

AU6. An additional fee imposed on parking, particularly in congested areas or during peak periods, to discourage unnecessary automobile travel.

AU7. A tax imposed on motor fuel that increases the cost of driving and may discourage excessive automobile use or help account for environmental costs.

AU8. A charge imposed on activities that create pollution, intended to make individuals or businesses account for environmental damage.

AU9. Harmful substances released into the atmosphere by vehicles, contributing to environmental damage and health problems.

AU10. Gases and pollutants released by motor vehicles, including greenhouse gases and substances that contribute to smog and poor air quality.

AV1. Greenhouse Gas Emissions

AV2. Public Transit Patronage

AV3. Transportation Density

AV4. Land Rent Gradient

AV5. Efficient Bid Rent Function

AV6. Transportation and Land Use Relationship

AV7. Housing Services

AV8. Housing Submarket

AV9. Housing Production Function

AV10. Isoquant

AV1. The release of gases that contribute to climate change, including emissions produced by burning fuel in automobiles and other vehicles.

AV2. The number of people using public transportation systems, influenced by service availability, population density, travel time, and cost.

AV3. The concentration of travel activity within a geographic area, which can influence the efficiency and cost of providing public transportation services.

AV4. The rate at which land rent changes with distance from the city centre, influenced by transportation costs and location advantages.

AV5. A land rent function that accounts for the full marginal cost of commuting, including both private transportation costs and external congestion costs.

AV6. The connection between transportation costs and urban development patterns, where changes in commuting costs influence land values, residential locations, population density, and city size.

AV7. The benefits and accommodation provided by a house, determined by characteristics such as size, quality, location, and available amenities.

AV8. A smaller segment of the overall housing market consisting of properties with similar characteristics, such as size, quality, type, price range, or location.

AV9. An equation showing how housing services are produced from property characteristics, such as lot size, building size, quality, and location.

AV10. A curve showing different combinations of production inputs, such as land and building size, that produce the same quantity of housing services.

AW2. Adjustment Costs

AW3. Sticky Housing Demand

AW4. Tenure Choice

AW5. User Cost of Housing Ownership

AW7. Rental Externality

AW10. Headship Rate

AW2. The expenses associated with changing housing consumption, including moving costs, searching for a home, broker fees, legal fees, and other transaction costs.

AW3. A situation where households do not immediately change their housing consumption in response to changing circumstances because moving or adjusting housing is costly.

AW4. The decision a household makes between renting and owning a property, based on economic costs, preferences, and other benefits.

AW5. The total economic cost of owning and occupying a home over a period of time, including mortgage interest, opportunity cost of equity, taxes, maintenance, depreciation, and changes in property value.

AW7. A situation where renters may have less incentive to maintain a property because the financial benefits of their maintenance efforts primarily go to the landlord.

AW10. The number of households per 100 people in a population, used to estimate household formation and housing demand.

AX3. Long-Run Housing Supply*

AX5. Housing Price Function (distance)

AX6. Builder's Bid Rent Function

AX7. Hedonic Pricing

AX10. Filtering

AX3. The amount of housing available over a longer period, when developers have sufficient time to construct new homes and respond to changes in demand.

AX5. An equation showing how the price of housing services changes with distance from the city centre, generally decreasing as commuting distance increases.

AX6. An equation showing the maximum amount a housing developer is willing to pay for land at different locations after accounting for construction costs and expected housing revenue.

AX7. A valuation method that breaks a property's price into the estimated values of its individual characteristics, such as size, bedrooms, age, quality, and location.

AX10. The process through which older housing gradually becomes lower in quality and more affordable, allowing it to move from higher-income housing markets to lower-income housing markets.

AY1. Principle of Contribution

AY2. Principle of Balance

AY3. Law of Decreasing/Increasing Returns

AY4. Housing as a Consumption Good

AY5. Housing as an Investment Good

AY6. Housing Services Market

AY7. Housing Asset Market

AY8. Housing Stock

AY9. Housing Consumption

AY10. Housing Budget Constraint

AY1. The appraisal principle that the value of an improvement is determined by how much it adds to the overall value of the property, rather than simply by its cost.

AY2. The appraisal principle that property value is maximized when land, buildings, and improvements are combined in an economically appropriate balance.

AY3. The principle that additional investment in a property may initially create benefits greater than its costs, but beyond a certain point, further investment produces benefits smaller than its costs.

AY4. The use of housing to satisfy a household's need for shelter, comfort, space, and other residential services.

AY5. The ownership of housing as a financial asset that may generate rental income, increase in value, or contribute to household wealth.

AY6. The market for occupying and using residential space, where housing services are exchanged through rental payments or owner occupancy.

AY7. The market where residential properties are bought and sold as investments or ownership assets.

AY8. The total number of existing residential units available within a particular geographic area.

AY9. The quantity and quality of housing services used by a household, influenced by income, preferences, and housing prices.

AY10. The limitation on a household's spending that determines the combinations of housing services and other goods it can afford with its available income.

AZ10. Permanent Income

AZ10. A measure of a household's expected long-term or lifetime income, which may influence housing decisions more strongly than income in a single year.

BA1. Demographic Factors

BA2. Household Formation

BA3. Average Household Size

BA4. Life-Cycle Housing Demand

BA5. Baby Boom Generation Effect

BA6. Market Demand for Housing

BA7. Perfectly Inelastic Housing Supply

BA8. Perfectly Elastic Housing Supply

BA9. Housing Supply Elasticity

BA10. Housing Construction Costs

BA1. Characteristics of a population, such as age, household size, and family structure, that influence housing demand.

BA2. The process through which individuals establish new households, increasing the number of housing units needed in a market.

BA3. The average number of people living in each occupied housing unit, calculated by dividing population by the number of households.

BA4. The tendency for housing preferences and consumption to change throughout a person's life, such as renting when young, buying larger homes when raising children, and downsizing during retirement.

BA5. The influence of a large population group on housing demand as its members move through different stages of life, affecting household formation, homeownership, and housing consumption.

BA6. The combined demand for housing services from all households in a particular market at different prices.

BA7. A situation where the quantity of housing supplied cannot change in response to price changes, represented by a vertical supply curve.

BA8. A situation where additional housing can be supplied at a constant price, represented by a horizontal supply curve.

BA9. A measure of how much the quantity of housing supplied responds to changes in housing prices.

BA10. The expenses involved in building new residential properties, including labour, materials, equipment, and other construction inputs.

BB1. Housing Renovations and Alterations*

BB2. Structural Capital

BB3. Capital Reinvestment

BB4. Marginal Product of Structural Capital

BB5. Marginal Benefit of Housing Investment

BB6. Marginal Cost of Housing Investment

BB7. Optimal Capital Investment

BB10. Residential Land Rent*

BB1. Improvements or modifications made to existing homes that increase or maintain the amount and quality of housing services provided.

BB2. The value of buildings, improvements, and other physical structures used to provide housing services.

BB3. Money spent on maintaining, renovating, or improving an existing property to preserve or increase its value and housing services.

BB4. The additional amount of housing services produced by investing one more unit of capital in a property.

BB5. The additional economic value created by investing more money in a property's maintenance or improvements.

BB6. The additional economic cost of investing one more unit of capital in a property, including the opportunity cost of the funds invested.

BB7. The amount of money a property owner should invest in maintenance or improvements where the marginal benefit of investment equals its marginal cost.

BB10. The payment made for the use of land for housing, influenced by its location, accessibility, and the value of housing that can be built on it.

BC1. Input Substitution in Housing Production

BC2. Property Characteristics

BC3. Implicit Hedonic Price

BC4. Hedonic Regression Model

BC5. Regression Coefficient

BC6. Regression Error Term

BC7. Constant-Quality House Price Index

BC8. Direct Comparison Approach

BC9. Quality Hierarchy of Housing

BC10. Downward Filtering

BC1. The process of replacing expensive land with additional building capital, such as constructing taller buildings on smaller parcels of land.

BC2. The physical, locational, and neighbourhood features that influence a property's value, such as size, age, bedrooms, quality, accessibility, and nearby amenities.

BC3. The estimated amount a particular property characteristic contributes to the overall market value of a property.

BC4. A statistical model that estimates property values by measuring how individual property characteristics affect selling prices.

BC5. A numerical value in a statistical model that estimates how much the predicted property price changes when a particular characteristic changes, holding other factors constant.

BC6. The portion of a property's price that cannot be explained by the characteristics included in a statistical valuation model.

BC7. A measure of housing price changes that controls for differences in property characteristics so that changes reflect prices rather than housing quality.

BC8. A real estate appraisal method that estimates a property's value by comparing it with similar properties that have sold and adjusting for differences in characteristics.

BC9. The ranking of housing units according to their quality, condition, and characteristics, with newer and higher-quality homes generally occupying higher positions.

BC10. The movement of housing from higher-quality and higher-income market segments into lower-quality and lower-income segments as properties age and become more affordable.

BD1. Housing Supply Restrictions

BD2. Housing Market Equilibrium

BD3. Net Absorption

BD4. Vacancy Rate

BD5. Excess Supply of Space

BD6. Buyer's Market

BD7. Seller's Market

BD8. Market Power

BD9. Four-Quadrant Model

BD10. Equilibrium Rent

BD1. Regulations or limitations, such as zoning and urban growth controls, that restrict new housing construction and may increase prices or slow the filtering process.

BD2. A situation where the quantity of housing demanded equals the quantity supplied at the prevailing market price.

BD3. The net change in occupied real estate space over a particular period, accounting for space that becomes occupied and space that is vacated.

BD4. The percentage of the total available rental property stock that is unoccupied during a particular period.

BD5. A situation where some real estate space remains vacant, allowing potential tenants to find suitable properties and providing a buffer for unexpected increases in demand.

BD6. A real estate market where buyers have greater bargaining power than sellers because many similar properties are available for purchase.

BD7. A real estate market where sellers have greater bargaining power because relatively few properties are available compared to the number of interested buyers.

BD8. The ability of buyers or sellers to influence transaction prices through negotiation rather than simply accepting a price determined by the market.

BD9. An economic model developed by DiPasquale and Wheaton that explains how real estate rents, asset prices, new construction, and the stock of space interact to determine market equilibrium.

BD10. The rental price established where the demand for real estate space intersects with the available supply of space.

BE1. Marginal Product of Space (MPS)

BE2. Value of the Marginal Product of Space (VMPS)

BE3. Asset Price / Asset Value

BE4. Net Operating Income (NOI)

BE5. Capitalization Rate (Cap Rate)

BE6. Direct Capitalization

BE7. Gross Rent Multiplier (GRM) / Gross Income Multiplier (GIM)

BE8. Capitalization Rate Determinants

BE9. New Construction

BE10. Increasing Cost Industry

BE1. The additional output a business produces by using one more unit of real estate space.

BE2. The additional revenue a business earns from using one more unit of space, calculated by multiplying the marginal product of space by the selling price of its output.

BE3. The market value of a real estate investment, determined primarily by the present value of the future income the property is expected to generate.

BE4. The income remaining from a rental property after subtracting operating expenses, before deducting financing costs and income taxes.

BE5. The ratio of a property's net operating income to its market value, used to estimate property values and evaluate investment returns.

BE6. A property valuation method that estimates market value by dividing a property's stabilized net operating income by an appropriate capitalization rate.

BE7. A valuation measure that relates a property's price to its gross rental income and can be used to estimate property value by multiplying gross income by the appropriate multiplier.

BE8. The factors influencing a property's capitalization rate, primarily interest rates, investment risk, returns on alternative investments, and expected future rent growth.

BE9. The development of new buildings that adds to the existing stock of real estate space, influenced by property prices and construction costs.

BE10. An industry where the cost of production increases as overall industry output expands because certain resources, such as skilled labour or materials, become more expensive.

BF1. Stock of Space

BF2. Stock Adjustment

BF3. Depreciation and Demolition

BF4. Steady-State Equilibrium

BF5. Stock Adjustment Rate

BF6. Four-Quadrant Equilibrium

BF7. Real Estate as a Commodity

BF8. Real Estate as a Financial Asset

BF9. Real Estate Investment Trust (REIT)

BF10. Owner-Occupant

BF1. The total quantity of existing real estate space within a market, including both occupied and vacant buildings.

BF2. The process through which the total stock of real estate space changes as new construction adds buildings while depreciation and demolition reduce the existing stock.

BF3. The reduction in the stock of real estate space caused by the deterioration, removal, or replacement of existing buildings.

BF4. A long-run market condition where rents, prices, construction, and the stock of space remain stable because new construction exactly replaces space lost through depreciation and demolition.

BF5. The proportion of existing real estate space lost through depreciation or demolition during a particular period.

BF6. A situation where the space market, asset market, construction market, and stock adjustment process are balanced, jointly determining equilibrium rents, property prices, construction levels, and the total stock of real estate.

BF7. The use of real estate to provide services, such as housing for residents or commercial space for businesses.

BF8. The ownership of property as an investment that can generate rental income, capital gains, or other financial benefits.

BF9. An investment organization that owns or invests in income-producing real estate, allowing investors to participate in property markets without directly owning individual buildings.

BF10. A person or business that both owns and occupies a property, participating in both the real estate space market and asset market.

BG1. Search and Match Process

BG2. Vacancy Buffer

BG3. Gross Potential Revenue

BG4. Gross Realized Revenue

BG5. Stabilized Vacancy Rate

BG6. Bargaining Power

BG7. Real Estate Brokerage

BG8. Market Inefficiency

BG9. Price Adjustment Lag

BG10. Construction Lag

BG1. The process through which potential buyers or tenants search for properties and property owners find suitable buyers or tenants.

BG2. The inventory of unoccupied real estate space maintained in a market to accommodate unexpected demand and allow tenants to find suitable properties.

BG3. The maximum rental income a property could generate if all rentable space were occupied at market rental rates.

BG4. The rental income expected or received after accounting for vacancies and other reductions from gross potential revenue.

BG5. A vacancy rate that reflects normal market conditions over time rather than the unusually high or low vacancy experienced by a particular property at one moment.

BG6. The ability of a buyer or seller to negotiate favourable transaction terms based on available alternatives, market conditions, and the willingness of the other party to complete the transaction.

BG7. The service of helping buyers, sellers, landlords, and tenants find suitable transactions and negotiate agreements.

BG8. A condition where market outcomes do not perfectly reflect efficient competition because of factors such as imperfect information, bargaining power, and slow adjustments.

BG9. The delay between a change in economic conditions and the resulting adjustment in real estate prices or rents.

BG10. The time required to plan, approve, finance, and complete new development, delaying the response of real estate supply to changing demand.

BH3. Real Estate Supply*

BH5. Space Market Demand Curve*

BH10. Profit-Maximizing Space Demand

BH3. The quantity of property or space available in a market, determined by existing buildings, new construction, and the removal of older structures.

BH5. A graph showing the amount of real estate space tenants are willing to occupy at different rental rates.

BH10. The quantity of real estate space a business chooses to occupy when the rent per unit of space equals the value of its marginal product.

BI1. Income Stream (property)

BI3. Required Rate of Return*

BI4. Risk-Neutral Investor

BI5. Alternative Investment Returns*

BI6. Rental Growth Rate (property)

BI7. Stabilized Net Operating Income

BI8. Perpetuity*

BI1. The series of rental payments or other cash flows a property is expected to generate over time.

BI3. The minimum investment return an investor expects to receive to compensate for the risks and opportunity costs associated with owning an asset.

BI4. An investor who makes investment decisions based on expected returns without requiring additional compensation for investment uncertainty.

BI5. The returns available from other investments, such as stocks or bonds, that influence the amount investors are willing to pay for real estate.

BI6. The expected percentage increase in rental income over time, influencing property values and capitalization rates.

BI7. An estimate of a property's normal annual operating income based on sustainable market rents, vacancies, and expenses rather than temporary conditions.

BI8. A stream of income expected to continue indefinitely, allowing property value to be estimated using a capitalization formula.

BJ1. Fixed Construction Costs

BJ2. Variable Construction Costs

BJ4. Construction Cost Shock

BJ5. Depreciation Rate (city level)

BJ8. Asset Market Shock

BJ9. Space Market Shock

BJ10. Stock Adjustment Shock

BJ1. Development expenses that do not change with the number of units built over the relevant range, such as certain permits or initial project setup expenses.

BJ2. Development expenses that change as the quantity of construction changes, such as labour and building materials.

BJ4. A change in building costs that affects developers' willingness to construct new space, potentially changing rents, property prices, and the available stock.

BJ5. The proportion of the existing real estate stock that loses economic usefulness or is removed during a particular period.

BJ8. A change in investor expectations, interest rates, investment risk, or alternative returns that changes the price investors are willing to pay for real estate.

BJ9. A change in the demand for real estate space, such as increased employment or productivity, that affects rents and the other components of the real estate market.

BJ10. A change in the rate at which buildings deteriorate or are demolished, influencing the stock of space and the resulting rents, prices, and construction levels.

BK1. Endogenous Variable (economic)

BK2. Exogenous Variable (economic)

BK3. Comparative Equilibrium Analysis

BK5. Curable Depreciation*

BK6. Incurable Depreciation*

BK9. Non-Excludability

BK10. Non-Rivalry

BK1. An economic variable whose value is determined within a particular model, such as rent or asset price in the four-quadrant model.

BK2. An economic variable determined outside a particular model that influences its outcomes, such as an externally determined interest rate or change in employment.

BK3. The process of comparing a market's initial equilibrium with its new equilibrium after economic conditions change.

BK5. A loss in property value caused by an issue that can be repaired or corrected economically because the value added by the repair is greater than its cost.

BK6. A loss in property value caused by an issue that cannot be corrected economically because the repair would cost more than the value it adds.

BK9. The characteristic of a good or service where people cannot be prevented from using or benefiting from it, even if they do not pay.

BK10. The characteristic of a good or service where one person's use does not reduce the amount or benefit available to others.

BL5. Spillover Effects (municipality)

BL5. The benefits or costs of a public service or economic activity that affect people outside the jurisdiction where the activity occurs.

BM3. Nominal Tax Rate

BM4. Effective Property Tax Rate

BM5. Tax Efficiency

BM6. Tax Equity

BM9. Property Tax Incidence

BM3. The official property tax rate established by the government and applied to assessed property values.

BM4. The actual property tax paid as a percentage of the property's market value, calculated by multiplying the nominal tax rate by the assessment ratio.

BM5. The principle that a good taxation system should raise government revenue while creating as little economic distortion or welfare loss as possible.

BM6. The principle that taxes should be applied fairly and consistently, with taxpayers receiving appropriate treatment based on their circumstances.

BM7. The principle that taxpayers or properties in similar economic circumstances should receive similar tax treatment.

BM8. The principle that taxpayers or properties in different economic circumstances should be taxed appropriately differently, with higher-value properties generally paying more taxes.

BM9. The way the actual economic burden of property taxation is distributed among landowners, businesses, tenants, consumers, and other market participants, regardless of who legally pays the tax.

BN1. Capital / Improvements Component of Property Tax

BN2. Tax Exporting

BN3. Tiebout Model

BN4. Voting with Their Feet

BN5. Fiscal Capitalization

BN6. Zoning

BN7. Exclusionary Zoning

BN8. Zoning for Separation of Conflicting Land Uses

BN9. Coase Theorem

BN10. Growth Controls

BN1. The portion of property tax applied to buildings and other improvements, which can be passed on to consumers or other market participants through higher prices or rents.

BN2. The process through which a jurisdiction shifts part of its property tax burden onto people outside its boundaries through the prices of exported goods and services.

BN3. An economic model explaining how households choose communities based on their preferred combinations of local public services and taxes, potentially leading to efficient public service provision.

BN4. The process through which individuals reveal their preferences for local taxes and public services by moving to the community that best matches their needs.

BN5. The process through which differences in local property taxes and public services are reflected in property values.

BN6. The division of a community into districts or zones where certain land uses and development activities are permitted while others are prohibited or restricted.

BN7. Land use regulations designed to restrict certain groups, often lower-income households, from living in particular communities through requirements such as large minimum lots or restrictions on multifamily housing.

BN8. Regulations that separate potentially incompatible activities, such as industrial and residential development, to reduce negative externalities like pollution, noise, and congestion.

BN9. The principle that when property rights are clearly defined, information is perfect, and transaction costs are zero, private bargaining can produce an efficient allocation of resources even when externalities exist.

BN10. Government policies intended to limit or slow urban development and population growth through restrictions on building, land use, density, or development costs.

BO1. Urban Service Boundary (USB)

BO2. Equity and Fairness

BO3. Imperfect Competition

BO4. Marginal Benefit of a Public Good

BO5. Marginal Cost of a Public Good

BO6. Efficient Provision of Public Goods

BO7. Optimal Jurisdiction Size

BO8. Local Diversity

BO9. Regional Service Authority

BO10. Government Transfer Payments

BO1. A designated boundary beyond which urban public services, such as sewer systems, drainage, and roads, will not be extended, making development outside the boundary more expensive.

BO2. The principle that government policies should promote a fair distribution of economic resources and benefits, particularly by helping disadvantaged individuals.

BO3. A market condition where buyers or sellers have the ability to influence prices, potentially causing inefficient economic outcomes.

BO4. The additional benefit an individual or society receives from providing one more unit of a public good or service.

BO5. The additional expense required to provide one more unit of a public good or service.

BO6. A situation where the total marginal benefits received by society from an additional unit of a public good equal the marginal cost of providing it.

BO7. The geographic area or population size at which a government can provide public services efficiently while considering economies of scale, local preferences, and spillover effects.

BO8. Differences in the preferences and needs of residents across communities, which can make smaller local governments more effective at providing suitable services.

BO9. An organization responsible for providing certain public services across multiple municipalities to coordinate service delivery and address regional needs.

BO10. Money transferred from one level of government to another to help finance public services or programs.

BP1. Enterprise Zones

BP9. Excess Burden of Taxation

BP1. Designated areas where governments offer businesses incentives, such as tax reductions or relaxed regulations, to encourage investment and economic activity.

BP9. The loss of economic welfare caused when a tax changes market behaviour and prevents mutually beneficial economic transactions.

BQ7. Traditional / Old View of Property Tax Incidence

BQ8. New View of Property Tax Incidence

BQ9. Fiscal Differential

BQ7. The theory that taxes on land are borne by landowners, while taxes on buildings and improvements can be passed forward to consumers.

BQ8. An economic perspective that examines property taxation across the broader economy and suggests that, under certain assumptions, the overall burden of property taxes falls on owners of capital.

BQ9. The difference between the public services and benefits residents receive from their community and the taxes they must pay to finance those services.

BR1. Tiebout Sorting (of households)

BR1. The process through which households select communities based on their preferred combinations of property taxes and public services.

BS1. Conflicting Land Uses*

BS3. Transaction Costs (as to theory of private bargaining)

BS4. Principle of Conformity

BS5. Development Permit Moratorium

BS6. Development Approval Delay

BS8. Long-Run Housing Supply Responsiveness*

BS1. Different activities located near one another that create negative effects, such as industrial operations producing pollution near residential neighbourhoods.

BS3. The expenses involved in negotiating, arranging, and enforcing agreements, which may prevent private bargaining from efficiently resolving land use conflicts.

BS4. The appraisal principle that real estate value is created and maintained when a property's characteristics and use are consistent with the demands of its market.

BS5. A temporary government restriction or suspension on issuing new building or development permits, often used to limit or delay urban growth.

BS6. The additional time required to receive government permission for construction, which can increase development costs and reduce the responsiveness of housing supply.

BS8. The ability of developers to increase residential construction over time in response to higher housing prices.

BT1. Amenity Capitalization

BT2. Property Value Effects of Growth Controls

BT1. The process through which desirable environmental or neighbourhood characteristics, such as parks and preserved open space, increase property values.

BT2. Changes in property prices caused by restrictions on urban development, which may increase the value of existing developed properties while reducing the value of undeveloped land.