Estimation of a spatial simultaneous equation model of population migration and housing price dynamics
AbstractIdentifying the local interactions between housing prices and population migration is complicated by their simultaneous and spatially interdependent relationship. Higher housing prices may repel households and push them into neighboring areas, suggesting that separately identifying interactions within versus across local neighborhoods is important. Aggregate data and standard econometric models are unable to address the multiple identification problems that may arise from the simultaneity, spatial interaction, and unobserved spatial autocorrelation. Such problems can generate biased estimates that run counter to economic theory. Using Michigan census tract-level data, we estimate a spatial simultaneous equations model that jointly considers population change and housing values, while also explicitly modeling interactions within neighborhoods, spatial interactions across neighborhoods, and controlling for unobserved spatial correlations. After controlling for simultaneity and spatial autocorrelation, the results show that neighborhoods are likely to experience an increase in their housing values if they gain population and they are more likely to lose population if they experience an increase in housing values. Our results are consistent with theory and underscore the importance of accounting for spatial interdependencies between population change and housing values.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 40 (2010)
Issue (Month): 5 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/regec
Population change Housing prices Spatial dependence Spillovers Simultaneous equations Generalized method of moments Direct and indirect impacts Krinsky and Robb;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gudmundur F Ulfarsson & John I Carruthers, 2006. "The cycle of fragmentation and sprawl: a conceptual framework and empirical model," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 33(5), pages 767-788, September.
- Cameron, Gavin & Muellbauer, John, 1998.
"The Housing Market and Regional Commuting and Migration Choices,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 45(4), pages 420-46, September.
- Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," CEPR Discussion Papers 1945, C.E.P.R. Discussion Papers.
- Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008. "Lost in space: population growth in the American hinterlands and small cities," Journal of Economic Geography, Oxford University Press, vol. 8(6), pages 727-757, November.
- Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995.
"Economic growth in a cross-section of cities,"
Journal of Monetary Economics,
Elsevier, vol. 36(1), pages 117-143, August.
- Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995. "Economic Growth in a Cross-Section of Cities," NBER Working Papers 5013, National Bureau of Economic Research, Inc.
- Glaeser, E.L. & Scheinkman, J.A., 1993. "Economic Growth in a Cross-Section of Cities," Harvard Institute of Economic Research Working Papers 1645, Harvard - Institute of Economic Research.
- Graves, Philip E., 1983. "Migration with a composite amenity: the role of rents," MPRA Paper 19917, University Library of Munich, Germany.
- Hailu, Yohannes G. & Rosenberger, Randall S., 2004. "Modeling Migration Effects on Agricultural Lands: A Growth Equilibrium Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Roback, Jennifer, 1988. "Wages, Rents, and Amenities: Differences among Workers and Regions," Economic Inquiry, Western Economic Association International, vol. 26(1), pages 23-41, January.
- repec:fth:stanho:e-95-4 is not listed on IDEAS
- Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
- Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-50, November.
- McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service.
- Hanna, Brid Gleeson, 2007. "House values, incomes, and industrial pollution," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 100-112, July.
- Rappaport, Jordan, 2008. "Consumption amenities and city population density," Regional Science and Urban Economics, Elsevier, vol. 38(6), pages 533-552, November.
- Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008. "The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach," Land Economics, University of Wisconsin Press, vol. 84(2), pages 241-266.
- Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003.
"Measuring the benefits of air quality improvement: a spatial hedonic approach,"
Journal of Environmental Economics and Management,
Elsevier, vol. 45(1), pages 24-39, January.
- Kim, Chong Won & Phipps, Tim T. & Anselin, Luc, 1998. "Measuring The Benefits Of Air Quality Improvement: A Spatial Hedonic Approach," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20959, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Mindy S. Crandall & Bruce A. Weber, 2004. "Local Social and Economic Conditions, Spatial Concentrations of Poverty, and Poverty Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1276-1281.
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- Mark Ferguson & Kamar Ali & M. Rose Olfert & Mark Partridge, 2007. "Voting with Their Feet: Jobs versus Amenities," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 38(1), pages 77-110.
- Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
- Hernán Enríquez Sierra & Carlos Barreto Nieto & Carolina Correa Caro & Jacobo Campo Robledo, 2012. "PRECIO DEL SUELO Y REGALÍAS EN COLOMBIA: Un análisis espacial para los municipios productores de petróleo," DOCUMENTOS DE TRABAJO 010252, UNIVERSIDAD CATOLICA DE COLOMBIA.
- Hernán Enriquez Sierra & Jacobo Campo Robledo, 2012.
"Equilibrio regional y patrones de migración para el continente americano 1960 – 2005: Análisis espacial por panel de datos,"
DOCUMENTOS DE TRABAJO
010388, UNIVERSIDAD CATOLICA DE COLOMBIA.
- Enríquez Sierra, Hernán & Campo Robledo, Jacobo, 2012.
"Equilibrio regional y patrones de migración para el continente americano 1960 - 2005: Análisis espacial por panel de datos
[Regional equilibrium and migration patterns in the Americas 1960 - 2005," MPRA Paper 43433, University Library of Munich, Germany, revised 2012.
- Enríquez Sierra, Hernán & Campo Robledo, Jacobo, 2012. "Equilibrio regional y patrones de migración para el continente americano 1960 - 2005: Análisis espacial por panel de datos
- Bischoff, Oliver, 2012.
"Explaining regional variation in equilibrium real estate prices and income,"
Journal of Housing Economics,
Elsevier, vol. 21(1), pages 1-15.
- Oliver Bischoff, 2010. "Explaining Regional Variation in Equilibrium Real Estate Prices and Income," Working Papers 036, Chair for Economic Policy, University of Hamburg.
- Karolien De Bruyne & Jan Van Hove, 2013. "Explaining the spatial variation in housing prices: an economic geography approach," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1673-1689, May.
- Liao, Wen-Chi & Wang, Xizhu, 2012. "Hedonic house prices and spatial quantile regression," Journal of Housing Economics, Elsevier, vol. 21(1), pages 16-27.
- P. Wilner Jeanty, 2012. "Stata implementation of the non-parametric spatial heteroskedasticity and autocorrelation consistent estimator," SAN12 Stata Conference 24, Stata Users Group.
- Hernán Enríquez Sierra & Jacobo Campo Robledo, 2013. "Regional equilibrium and migration patterns in the Americas 1960–2005: Spatial data panel analysis," WORKING PAPERS 010478, UNIVERSIDAD SERGIO ARBOLEDA.
- Guilherme Mendes Resende & Alexandre Xavier Ywata de Carvalho & Patrícia Alessandra Morita Sakowski, 2013. "Evaluating Multiple Spatial Dimensions of Economic Growth in Brazil Using Spatial Panel Data Models (1970 - 2000)," Discussion Papers 1830a, Instituto de Pesquisa Econômica Aplicada - IPEA.
- Plantinga, Andrew J. & Détang-Dessendre, Cécile & Hunt, Gary L. & Piguet, Virginie, 2013. "Housing prices and inter-urban migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 296-306.
- Partridge, Mark & Betz, Mike, 2012. "Country Road Take Me Home: Migration Patterns in the Appalachia America and Place-Based Policy," MPRA Paper 38293, University Library of Munich, Germany.
- Jeanty, P. Wilner & Ulimwengu, John Mususa, 2011. "Poverty rate and government income transfers: A spatial simultaneous equations approach," IFPRI discussion papers 1076, International Food Policy Research Institute (IFPRI).
- Stephens, Heather & Partridge, Mark, 2012. "Lake Amenities, Environmental Degradation, and Great Lakes Regional Growth," MPRA Paper 43903, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.