By Edwin Buitelaar
By means of utilising transaction expense economics to an overview of land use structures, the writer right here tackles the continuing debate among industry and govt in making plans. The e-book presents a clean perspective and an invaluable contribution to a turning out to be box of analysis for researchers in city making plans, public management and land economics.
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Extra info for The Cost of Land Use Decisions: Applying Transaction Cost Economics to Planning and Development
Example text
Sometimes, for instance when making an arrangement with your neighbour about reducing nuisance, it might be suitable to sign a long-term contract, instead of a more short-term and fluid market transaction. In other cases, it could be appropriate to incorporate a transaction between two parties into one organisation. There are also instances, like in the case of air pollution, which make it difficult (because of high transaction costs) to coordinate the transactions within one organisation; then government regulations (described by Coase, 1960, p.
33). But this neglects the fact that there can be structures at different levels. There are some structures that are not constructed by the present actors but, for instance, exist at higher (or different) structural levels or by virtue of past generations of actors. To give an example, the real estate market, or the structure of building provision (Ball, 1998), can be influenced relatively little by the actions of individual stakeholders in a redevelopment project. The use of governance structures and the related transaction costs are embedded in an institutional context.
The dimensions’ interdependency, uncertainty and timing are primarily related to the narrow definition, and are therefore less easily applicable to an empirical study that seeks to identify transactions in land development and land use planning. g. Williamson, 1996), I use the transaction as the unit of analysis, since it is a ubiquitous, concrete and well-defined unit (Alexander, 2001a, p. 48). However, in the way in which Alexander uses it, this unit is not sufficient to cover the whole range of institutional arrangements through which land use is changed.