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Download Economic Theory and the Construction Industry by P. Hillebrandt PDF

By P. Hillebrandt

This revised variation of a longtime vintage textbook brings the topic correct modern. It applies fiscal conception to the formation of call for at the development and to the best way the responds. This version presents a topical review of the implication for festival of latest equipment of procurement, incorporates a new bankruptcy on rehabilitation, fix and upkeep, and extends using concept to matters akin to the issues of acceptable know-how for constructing international locations, and contractors' diversification.

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Sample text

Parry Lewis (1965), in a painstaking analysis of building cycles in Britain from 1700, has found that there are distinct long-term fluctuations in construction activity, often regional in character, and finds the ‘key . . in population, credit and shocks. ’. The shocks he has in mind are, for example, bad harvests or war, which will have repercussions on the natural increase in population, on migration, etc. They will also affect the monetary sector, often through the balance of payments. Population and credit as exogenous variables can be taken into account in making long-term forecasts of construction activity, for example of housing and education, but shocks cannot by their very nature be taken into consideration in the forecasting process.

5 or lower) (Goodman, 1989). In the early 1970s there was a burst of activity in the UK in estimating income elasticities and price elasticities of demand for housing, probably on account of the change in the relationship of the number of households and the number of dwellings which makes some understanding of elasticities essential for forecasting. Most of the work has concentrated on private-sector housing for owner occupation and refers to expenditure on housing as a whole, which would of course include the cost of land.

Energy saving is one area where government has acted in relation to building. An indication of the change in attitudes is given by the introduction in 1994 by the US Commerce Department of Environmental Accounts, starting with subsoil assets like oil, gas and coal (US Department of Commerce, 1994). As oil is a finite asset, it is desirable to keep its use as low as reasonably possible. However, the individual consumer has no great incentive to conserve energy, unless it is cheaper to do so, because he is not interested in the oil situation beyond his lifetime.

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