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r - 13 157 �I <br /> [127 [13] LAND USE such <br /> higher-run commensurate benefit. The debate over the acceptability of <br /> higher- an ordinance centers around the question of economic inci- <br /> require dence. which is the economist's jargon <br /> f for talking about who <br /> ire with ultimately pays for the low- and moderate-income <br /> io legal dente. however, is not a problem if the particular <br /> than the costs of <br /> ion. the device contains benefits equal he local the obligation demanded. The incidence t problem bneais created o the <br /> he local governme>�,when it increases <br /> time bestowing a commensurate <br /> ind law, economy <br /> may be benefit. <br /> The Incidence Problem <br /> cation The principal argument against regulatory mechanisms that <br /> seek to build inclusionary housing through s that such mechanisms <br /> �nuinely that do not have commensurate be nefits <br /> greatly <br /> f such <br /> are inequitable because housing builders home buyers of on its in <br /> or land- housing to market home buyers. Since <br /> i feel, <br /> higher-density developments. which include inclusionary hous- <br /> m echa <br /> _ ing, are assumed to be middle class <br /> not than <br /> provhsions, <br /> Its from in estate areas• which are usually inequitable. The rich are <br /> :rs who the system is said to be particularly the entire <br /> Bence of 1 getting off free and the middle classes are carrying <br /> .litarians I burden' supporters of such mechanisms, because <br /> Not so, argue the supp rites <br /> d use its ! ward as <br /> need for this argument assumes that home builders cessup p <br /> mneously ! directly in proportion to their costs--adjusting inept ric. would sell s <br /> rosy set- I costs increase. No builder. except a very a <br /> tither be <br /> house for $100.000 if he c n as based sell it on economic for $10.000. <br /> housing modeling, <br /> houusing � According to economic <br /> pricing for maximum economic return can be d determined n d ifi the ow- and I and demand, <br /> value of elasticities of supply <br /> iic hard- <br /> production rates, and some other t sli known. <br /> of the prices in economic models usually w5 downabsorpt on rates). <br /> (or the number of units a builder sells t an ec1onumc modeltc uld ven period of <br /> c impact <br /> There is a theoretically ideal pf1Ce <br /> ithout a all <br /> calculate for any point in `ime lic tee and soedependenknown.on vari- <br /> pacing theories are do <br /> appeared <br /> ables that can only he guessed at that builders pay no attention to <br /> wtheo late them. There is evidence. in fact, vino usingmatte et are basi- <br /> s to the late tally irrational because they depend Income <br /> Institute's s unpu� perceptions and motions of value and prestige. Builders believe <br /> ercep prices will actually in- <br /> that under certain situations increasing p" perceived by <br /> in- <br /> crease demand. because price is almost always p <br />