This chapter deals with the central issue of capital, its definition, and valuation. We look at t... more This chapter deals with the central issue of capital, its definition, and valuation. We look at the problem of the valuation of land, and discuss various concepts of capital. Capital is linked to the productive capacity of an economy, via investment in fixed capital, especially buildings and infrastructure. The chapter ends by applying the stock and flow concepts of Chapter 4 to capital and investment in the national income accounts.
In order to plan and co-ordinate the physical activities and output of industries, planners requi... more In order to plan and co-ordinate the physical activities and output of industries, planners require volume data, such as technical input per unit of output. For instance, will there be enough bricks to permit a particular volume of construction? If not, can brick industry capacity be increased, or can construction industry demand for bricks be reduced? Even in a capitalist market economy, the need to ask this kind of question is clear, particularly in a relatively closed sector like construction.
In this chapter we apply a variety of approaches to understand the differences in operation of di... more In this chapter we apply a variety of approaches to understand the differences in operation of different markets. We begin with a critical appraisal of the neoclassical approach to the price mechanism, and propose to follow the line of argument given by Morishima (1984), who defines flexprice and fixprice markets. We find this approach altogether more realistic, because it enables an individual analysis of particular markets to take into account both specific features of the market and the way the market responds to changes in economic conditions over time. We apply this approach to various markets in property and construction.
While value added is the source of income and wages, labour is the source of value added. Without... more While value added is the source of income and wages, labour is the source of value added. Without work, production could not take place. We now therefore turn our attention to the organisation of the construction sector and the labour processes involved.
... capacity of the system but not cause unavailability in any one part of the hospital. ... then... more ... capacity of the system but not cause unavailability in any one part of the hospital. ... then monitor the PFI company's performance in managing each risk, advise the PFI company on ... banks, and their monitors, are not particularly concerned about risks of cost overrun, because the ...
... THE NEW URBAN GEOGRAPHY AND NEO-CLASSICAL ECONOMICS ... do not have perfect knowledge, produc... more ... THE NEW URBAN GEOGRAPHY AND NEO-CLASSICAL ECONOMICS ... do not have perfect knowledge, products and locations are not homogeneous, individuals do have a non ... greatest achievement of Marxism through which, and only through which, can we see the relation ...
Variations in aggregate construction demand follow a cyclical pattern, as does demand in the econ... more Variations in aggregate construction demand follow a cyclical pattern, as does demand in the economy as a whole. We develop a business cycle-based explanation of the cycles in construction demand, and advance a profits-based model of the endogenous operation of the business cycle.
This research provides a sector competitiveness analysis of the UK construction industry. The stu... more This research provides a sector competitiveness analysis of the UK construction industry. The study investigates the relative position (in terms of labour productivity levels and rates of change) of the UK construction industry compared to the construction industries of ...
This chapter discusses the marketing, output and pricing decisions of speculative builders and co... more This chapter discusses the marketing, output and pricing decisions of speculative builders and contractors. We look at the marketing and production considerations which speculative builders need to take into account in planning their production. These include the relationship between their fixed cost purchases of land and their variable costs of building using specialist contractors. We also look at the marketing and production considerations of contractors, who are involved in tendering procedures, and note how contracts are let sequentially throughout the year. This enables contractors to adjust their tender prices in response to uncertainty and evolving conditions.
Having looked in detail at housebuilding markets in Chapter 2, we now expand the discussion to co... more Having looked in detail at housebuilding markets in Chapter 2, we now expand the discussion to construction markets in general. We begin by elaborating on some aspects of the conventional industrial economics model of the market, such as market structure, concentration, and barriers to entry. From a seller’s point of view we discuss price elasticity of demand applied in a construction market context, and we conclude the chapter by discussing market segmentation and marker specialisation by construction firms.
In Chapter 2 labour relations in construction were discussed. Here we discuss the process of usin... more In Chapter 2 labour relations in construction were discussed. Here we discuss the process of using employed labour to make profits. This is achieved through the productivity of labour and this will be considered at both the level of the firm and the industry. The productivity of labour will be seen to depend of the amount of plant and equipment used as well as the technology embodied in that equipment, but also upon a wide range of other variables.
The belief of many casual users of statistical data is that statistical distributions always show... more The belief of many casual users of statistical data is that statistical distributions always show a central tendency, so that the average figure provides the best summary of the data. This is, however, not always the case in construction. The proposition of this chapter is that in fact, if anything, there are often spreads in the data which lead to bi-modal distributions. In other words, in some areas there are tendencies towards polarisation. These tendencies can be explained to some extent by the social, political, and cultural environment in which firms trade, the social structure of accumulation (see Chapter 1, social structure of the economy; social structure of production).
This chapter deals with the central issue of capital, its definition, and valuation. We look at t... more This chapter deals with the central issue of capital, its definition, and valuation. We look at the problem of the valuation of land, and discuss various concepts of capital. Capital is linked to the productive capacity of an economy, via investment in fixed capital, especially buildings and infrastructure. The chapter ends by applying the stock and flow concepts of Chapter 4 to capital and investment in the national income accounts.
In order to plan and co-ordinate the physical activities and output of industries, planners requi... more In order to plan and co-ordinate the physical activities and output of industries, planners require volume data, such as technical input per unit of output. For instance, will there be enough bricks to permit a particular volume of construction? If not, can brick industry capacity be increased, or can construction industry demand for bricks be reduced? Even in a capitalist market economy, the need to ask this kind of question is clear, particularly in a relatively closed sector like construction.
In this chapter we apply a variety of approaches to understand the differences in operation of di... more In this chapter we apply a variety of approaches to understand the differences in operation of different markets. We begin with a critical appraisal of the neoclassical approach to the price mechanism, and propose to follow the line of argument given by Morishima (1984), who defines flexprice and fixprice markets. We find this approach altogether more realistic, because it enables an individual analysis of particular markets to take into account both specific features of the market and the way the market responds to changes in economic conditions over time. We apply this approach to various markets in property and construction.
While value added is the source of income and wages, labour is the source of value added. Without... more While value added is the source of income and wages, labour is the source of value added. Without work, production could not take place. We now therefore turn our attention to the organisation of the construction sector and the labour processes involved.
... capacity of the system but not cause unavailability in any one part of the hospital. ... then... more ... capacity of the system but not cause unavailability in any one part of the hospital. ... then monitor the PFI company's performance in managing each risk, advise the PFI company on ... banks, and their monitors, are not particularly concerned about risks of cost overrun, because the ...
... THE NEW URBAN GEOGRAPHY AND NEO-CLASSICAL ECONOMICS ... do not have perfect knowledge, produc... more ... THE NEW URBAN GEOGRAPHY AND NEO-CLASSICAL ECONOMICS ... do not have perfect knowledge, products and locations are not homogeneous, individuals do have a non ... greatest achievement of Marxism through which, and only through which, can we see the relation ...
Variations in aggregate construction demand follow a cyclical pattern, as does demand in the econ... more Variations in aggregate construction demand follow a cyclical pattern, as does demand in the economy as a whole. We develop a business cycle-based explanation of the cycles in construction demand, and advance a profits-based model of the endogenous operation of the business cycle.
This research provides a sector competitiveness analysis of the UK construction industry. The stu... more This research provides a sector competitiveness analysis of the UK construction industry. The study investigates the relative position (in terms of labour productivity levels and rates of change) of the UK construction industry compared to the construction industries of ...
This chapter discusses the marketing, output and pricing decisions of speculative builders and co... more This chapter discusses the marketing, output and pricing decisions of speculative builders and contractors. We look at the marketing and production considerations which speculative builders need to take into account in planning their production. These include the relationship between their fixed cost purchases of land and their variable costs of building using specialist contractors. We also look at the marketing and production considerations of contractors, who are involved in tendering procedures, and note how contracts are let sequentially throughout the year. This enables contractors to adjust their tender prices in response to uncertainty and evolving conditions.
Having looked in detail at housebuilding markets in Chapter 2, we now expand the discussion to co... more Having looked in detail at housebuilding markets in Chapter 2, we now expand the discussion to construction markets in general. We begin by elaborating on some aspects of the conventional industrial economics model of the market, such as market structure, concentration, and barriers to entry. From a seller’s point of view we discuss price elasticity of demand applied in a construction market context, and we conclude the chapter by discussing market segmentation and marker specialisation by construction firms.
In Chapter 2 labour relations in construction were discussed. Here we discuss the process of usin... more In Chapter 2 labour relations in construction were discussed. Here we discuss the process of using employed labour to make profits. This is achieved through the productivity of labour and this will be considered at both the level of the firm and the industry. The productivity of labour will be seen to depend of the amount of plant and equipment used as well as the technology embodied in that equipment, but also upon a wide range of other variables.
The belief of many casual users of statistical data is that statistical distributions always show... more The belief of many casual users of statistical data is that statistical distributions always show a central tendency, so that the average figure provides the best summary of the data. This is, however, not always the case in construction. The proposition of this chapter is that in fact, if anything, there are often spreads in the data which lead to bi-modal distributions. In other words, in some areas there are tendencies towards polarisation. These tendencies can be explained to some extent by the social, political, and cultural environment in which firms trade, the social structure of accumulation (see Chapter 1, social structure of the economy; social structure of production).
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