Application of Von Thunen Model in Land Price Change

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  • Topic: Economics, Johann Heinrich von Thünen, Market
  • Pages : 4 (1271 words )
  • Download(s) : 515
  • Published : October 15, 2012
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Application of Von Thunen Model in Land Price Change
Fahmida Afrose & Prodip Kumar Das
Urban & Rural Discipline Khulna University, Khulna, Bangladesh

Introduction
Land use planning is very much important for physical planning of an area and land price is the most vital issue of any physical planning. To the classical economist land is defined as being all the free gifts of nature which yield an income. Balchin and Jeffrey (1977) often found land and capital so interdependent that separate identification may either be impossible or inconvenient. The price of developed Land is an of the most important cost aspect of the price of a rent. Normal conditions and factors that influence land prices in the free market include location, proximity and accessibility, infrastructure development cost, productivity, shape and size of the parcels and the demand for land. (Ping Ai March, 2005). In urban area change in land price in every year has became a common phenomena. Changes in land prices were determined by computing the differences in land prices for lots. The land price change is influenced by many factors. The main factor responsible for the land price, main focus of this study, is the distance of the Central Business District (CBD) from the land. Model is a simplification of reality which takes the theoretical abstractions and puts it into a form that we can manipulate. Von Thunen Model is one of them. We use this model to define the change in land price with the distance of CBD.

Land Price Influencing Factors
Land prices patterns, are complex due to its built-in spatial pattern. The analysis of the spatial pattern of land prices is of vital importance for planning, development and land management issues. Land has economic, environmental, historic, and social values. (Ping Ai, 2005) The price of land is dependent on the location, quality and the facilities available to the surrounding areas of land. (Alauddin Ahmed, 2005) Land value influencing factors can be...
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