Ahlfeldt, Gabriel M. 
ORCID: 0000-0001-5664-3230
(2013)
If we build it, will they pay? Predicting property price effects of transport innovations.
Environment and Planning A, 45 (8).
pp. 1977-1994.
ISSN 0308-518X
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Abstract
In this study I apply a gravity-type labor-market accessibility model to the Greater London Area to investigate house price capitalization effects. The spatial scope of labor-market effects is found to be about 60 minutes. Doubling accessibility increases the utility of an average household by about 12%. I combine the gravity approach with a transport decision model that takes into account the urban rail network architecture, allows for mode switching, and thus accounts for the effective accessibility offered by a station, to predict the property price effects of the 1999 Jubilee Line and DLR extension. A considerable degree of heterogeneity is predicted both in terms of the magnitude as well as the spatial extent of price effects around new stations. A quasi-experimental property price analysis reveals that the model performs well in predicting the effective capitalization effects, suggesting that the approach might be a viable ingredient in transport planning.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.envplan.com/A.html |
| Additional Information: | © 2013 Pion and its Licensors |
| Divisions: | Geography & Environment Spatial Economics Research Centre |
| Subjects: | H Social Sciences > HE Transportation and Communications H Social Sciences > HJ Public Finance H Social Sciences > HN Social history and conditions. Social problems. Social reform |
| JEL classification: | H - Public Economics > H4 - Publicly Provided Goods > H43 - Project Evaluation; Social Discount Rate R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R40 - General R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R58 - Regional Development Policy |
| Date Deposited: | 30 Oct 2012 09:32 |
| Last Modified: | 13 Nov 2024 04:21 |
| URI: | http://eprints.lse.ac.uk/id/eprint/47131 |
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