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Rays of Research on Real Estate Development by Jaime Luque

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CHAPTER 9

Impact Fees

In collaboration with Mason Engnes and Nathanial Matteson

In any market where land is utilized, there will always be interactions between the interests of private firms and those of society; short-term fixed costs, long-term debt obligations, private profits, and public externalities will be at the center of a firm’s conversation with local approval agencies. Real estate developers often encounter this debate as the implicit costs of construction and higher utility requirements must either be paid for by the firm initially, or fall on the region’s population over a period of time.

In their 2006 paper, “Impact fees and single-family home construction,” Gregory Burge and Keith Ihlanfeldt argue that private actors should embrace ...

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