Land Price Model of SMARTPLANS
The land price model of SMARTPLANS is used to predict zonal average prices per land use type L at time t + 1. SMARTPLANS expresses the average land price of a specific land use type L in zone i as follows:
where the betas are the estimated parameters to be inputted in the software for land use type L, and X’s is a set of k zonal characteristics found to have significant influence on the average land price of land use type L. Example of the X variables may include:
- number of houses of a specific type (e.g., detached, semi-detached, etc.) in zone i,
- average household size in zone i,
- average household income in zone i, etc.