Recent literature has only indirectly examined the effects of suburban fiim location on the local housing market. This paper will focus directly on the type of housing that is built due to the new firm stimuli in a suburban area. The rent-bid theory is the model used to support the idea that the type of housing built is reflective of the profile of the workers. The theory of choice is the model used to describe the behavior of the developer. A developer will provide that combination of housing output which yields the highest level of profits. Three hypotheses were derived from these twotheories: if the firm employs all blue-collar workers, then the type of housing built in the adjacent area will tend to be lower quality housing. If the firm employs all white-collar workers, then there will be no housing built in the adjacent area. Instead, the housing that will be supplied will be higher quality dwellings set further away from the new firms. If the firm employs both blue-collar and white-collar housing, then the type of housingbuilt in the adjacent area will tend to be lower quality units. These hypotheses were empirically tested.
Nardone, Beth M., "Suburban Film Location and New Housing Construction" (1988). Senior Independent Study Theses Archive. Paper 118.
Bachelor of Arts
Senior Independent Study Thesis
Available for download on Thursday, January 01, 2150
© Copyright 1988 Beth M. Nardone