By Graham Hallett
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E. Boulding, Economics as a Science, McGraw-Hill, 1970, p. 91. 30. Honor Croome, 'Progress Without Tears', Lloyds Bank Review, July 1959. It can be argued (Little op. e. perhaps those who suffer from expropriation should suffer. g. land reform in South America. But when real property is more widely distributed, the arguments are stronger for treating seperately the questions of compensation and policy on the distribution of ownership. 3 The Property Market A social psychologist once chided an economist: You say that prices are determined by supply and demand, but I know they are determined by people.
The factors more directly concerned with the property market can be Urban Land Economics 38 divided into the influence of the Government and of non-government institutions. GOVERNMENT INFLUENCE Government influence operates through a range of policies- notably housing policy, regional policy, town planning, and land taxation. Two basic points need to be stressed (which might seem obvious if they had not regularly been ignored). In a market economy: (a) Anything which reduces supply tends to increase prices.
It is true that, although the benefits to the public greatly exceed the cost of adequate compensation, the financial resources available to a local authority may be limited. But this is a problem of the distribution of resources between the various tiers of government. g. infra-structure charges, or giving local authorities a share in the taxation of development value. But the poverty of a local authority under a particular financial system is no ground for a general principle of miserly compensation (See Chap.