Download e-book for kindle: Economic Theory and the Construction Industry by P. Hillebrandt

By P. Hillebrandt

ISBN-10: 0230372481

ISBN-13: 9780230372481

ISBN-10: 0333774795

ISBN-13: 9780333774793

This revised variation of a longtime vintage textbook brings the topic correct brand new. It applies monetary thought to the formation of call for at the building and to the way in which the responds. This variation presents a topical review of the implication for pageant of recent equipment of procurement, encompasses a new bankruptcy on rehabilitation, fix and upkeep, and extends using idea to matters akin to the issues of acceptable know-how for constructing international locations, and contractors' diversification.

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Extra resources for Economic Theory and the Construction Industry

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Consumers’ confidence and purchasing power will fall leading to an unwillingness to spend, not only on new housing but also on maintenance and improvement of housing. This rather doleful picture can of course be reversed by a reduction in interest rates. It is apparent that fluctuations in construction output follow inevitably from changes in interest rates. Government may encourage certain types of development in order to benefit the economy. In many South East Asian economies, especially those of Hong Kong and Singapore, the development and real estate business provides revenue for government, and its activities generate further prosperity.

Not all costs incurred in the past are sunk costs. Past expenditure on a factory may be partly offset by the sale of the factory or its use for other purposes. Other types of cost, for example, transaction costs, fixed costs, variable costs and so on are defined in Chapter 10. Price Price is the rate at which exchange may or does take place and it applies to all resources and factors of production; thus the price of 16 Introduction cement is so many pounds a tonne, the price of labour is wages, the price of capital is interest.

5B. Assume that for some exterior reason, such as immigration or a rise in incomes, the demand D 1 shifts to D2 on 1 January of year 2. As at a certain day the stock cannot be increased, the stock remains the same at S1 and the new price becomes P 2. 5B, adding it on to the stock. 5A. 8 million notional housing units and a price P 3. 7 and the new price P 4. This process continues until a new long-term equilibrium is established. Whether 48 The Demands on the Construction Industry this is at a price above or below the price P 1 depends on the shape of the curves, for example whether there are any factors pushing up the long-run supply curve.

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Economic Theory and the Construction Industry by P. Hillebrandt


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