ESTIMATION OF FLOOR PRODUCTION FUNCTION FOR URBAN ECONOMIC MODELS CONSIDERING BUILDING HEIGHT

Abstract

Productivity of building construction substantially affects the urban structure and the quality of the residential environment. However, the building productivity and the impact of building height on construction cost are not sufficiently investigated. This study aims to analyze the effect of building height on building floor productivity consistent with urban economic models using data of building construction statistics in Japan. As a result, we found that the construction cost per floor area increases as higher the building height, while its increasing rate decreases to the height. We applied the estimated cost function to the developer model to estimate the input capital cost and land rent by prefecture, and we found this model represents these indices adequately. We also compared the proposed model and models in the literature and examined its features in construction cost estimation.