REAL ESTATE MARKET: LOCATION AND URBAN AMENITIES

Abstract

It was intended to provoke a discussion regarding the economy in the cities, initially bringing theoretical discussions in the concepts of the index of life quality built. Through the three approaches – Hedonic, from Kahn, and from discrete models, it was possible to see a trade off among the economic opportunities and local amenities that conditions the migration decision. There are differentials, such as nominal phenomenon reflex, wherewith the higher cost of life in big cities would be compensated with more qualified and skillful workers than in smaller towns. It is assumed the factors of production, capital and work are considered in spatial agglomeration cases and its economy. Afterwards, it was analyzed if this agglomeration with its economies would have sustainability. In this case, it was dissected the relevant ideas as for the most common agglomeration styles. Lastly, the ideas for the approach were discussed to the urban development.