Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Valuation Problems in Developing Countries: A Theoretical Framework
Property valuation problems, such as valuation inaccuracies/variations, client influence and inappropriate use of heuristics negatively affect the valuation profession in Kenya and other developing nations. Although most empirical studies under the rubric of behavioural issues in valuation mainly attribute these problems to cognitive limitations from human psychology, a few studies demonstrate that these problems exist partly because of weaknesses in the standard theory of market value and indicate the importance of anchoring valuation research in economics. This paper examines the theoretical explanation for valuation problems in Kenya and similar developing countries, intending to introduce a more appropriate theoretical framework, one that better explains these problems. This study reviewed the extant theoretical and empirical literature and established that the standard theory of market value is overly abstract, unrealistic and incapable of explaining valuation problems across the world, especially in developing countries. Based on these findings, the study argues for the need for an alternative theoretical framework, one that is more realistic and capable of adequately explaining valuation problems in practice. The study proposes the New Institutional Economics (NIE) as an alternative theoretical framework for property valuation and concludes that valuation problems in practice are better explained within the theoretical lens of this framework.
Valuation Problems in Developing Countries: A Theoretical Framework
Property valuation problems, such as valuation inaccuracies/variations, client influence and inappropriate use of heuristics negatively affect the valuation profession in Kenya and other developing nations. Although most empirical studies under the rubric of behavioural issues in valuation mainly attribute these problems to cognitive limitations from human psychology, a few studies demonstrate that these problems exist partly because of weaknesses in the standard theory of market value and indicate the importance of anchoring valuation research in economics. This paper examines the theoretical explanation for valuation problems in Kenya and similar developing countries, intending to introduce a more appropriate theoretical framework, one that better explains these problems. This study reviewed the extant theoretical and empirical literature and established that the standard theory of market value is overly abstract, unrealistic and incapable of explaining valuation problems across the world, especially in developing countries. Based on these findings, the study argues for the need for an alternative theoretical framework, one that is more realistic and capable of adequately explaining valuation problems in practice. The study proposes the New Institutional Economics (NIE) as an alternative theoretical framework for property valuation and concludes that valuation problems in practice are better explained within the theoretical lens of this framework.
Valuation Problems in Developing Countries: A Theoretical Framework
Aigbavboa, Clinton (Herausgeber:in) / Thwala, Wellington (Herausgeber:in) / Aghimien, Douglas (Herausgeber:in) / Cheloti, Irene (Autor:in) / Mooya, Manya (Autor:in)
Construction Industry Development Board Postgraduate Research Conference ; 2022 ; Eastern Cape, South Africa
Towards a Sustainable Construction Industry: The Role of Innovation and Digitalisation ; Kapitel: 28 ; 274-283
24.04.2023
10 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
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