Calculating developer charges for urban infrastructure: a feasible method for applying marginal cost pricing.: An article from: Engineering Economist

This digital document is an article from Engineering Economist, published by Institute of Industrial Engineers, Inc. (IIE) on September 22, 2003. The length of the article is 7952 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the author: This paper considers the application of marginal cost pricing to the calculation of developer charges, also termed exactions or impact fees, in the contemporary urban environment. We derive an "ideal" measure of long-run marginal capacity cost (MCC) of urban infrastructure expansion. Given practical difficulties in estimating MCC, we develop an alternative Adjusted Amortization Method (AAM) with less onerous data requirements. Using a simulation model we compare the magnitudes of developer charges derived from the ideal MCC measure, our AAM method and three other common approaches to the measurement of MCC. Our results show that an adjusted version of the AAM formula performs very well.

Citation Details
Title: Calculating developer charges for urban infrastructure: a feasible method for applying marginal cost pricing.
Author: Judith McNeill
Publication:Engineering Economist (Refereed)
Date: September 22, 2003
Publisher: Institute of Industrial Engineers, Inc. (IIE)
Volume: 48 Issue: 3 Page: 218(23)

Distributed by Thomson Gale