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Urban Studies, Vol. 30, No. 8, 1381-1397 (1993)
DOI: 10.1080/00420989320081321

A Theoretical Framework for the Functioning of the Dutch Property Market

Erwin van der Krabben

Department of Social Economics, Faculty of Economics. Tilburg University, Postbox 90153, 5000 LE Tilburg, The Netherlands

Jan G. Lambooy

Faculty of Economics, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands

In this article a theoretical framework will be presented to aid understanding of the functioning of property markets, more particularly the Dutch property market. It will be argued that traditional urban economic theories are not able to explain the structure and processes of the built environment. In the Dutch case, we are confronted with two problems; first, to find a way in which urban economic theories, designed for a context of cities in Great Britain and the US, can be used to explain urban development that takes place in the different context of Dutch cities; and, secondly, to formulate a set of hypotheses appropriate for the Dutch property market. The hypotheses concern the strategies of individual actors on the property market and the underlying factors. It is concluded that, in general, the relation between institutional structure and property development has been neglected both because of insufficient attention from economic scientists, and because empirical research is very complicated.


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