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Does Planning Matter? Effects on Land Markets

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  • Wenjie Wu
  • Guanpeng Dong
  • Bing Wang

Abstract

This paper uses a spatial multi-intervention difference-in-difference method to examine the opening and planning impacts of transport improvements on land markets in a mega-city of China. The results suggest the significant heterogeneity in the capitalization effects from changes in rail access on prices for different land uses in affected areas versus unaffected areas. Residential and commercial land parcels receiving increased station proximity experience appreciable price premiums. However, such effects vary widely over space. These results add to the evidence that public investments have an important role to play in spurring the spatially targeted land market. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Wenjie Wu & Guanpeng Dong & Bing Wang, 2015. "Does Planning Matter? Effects on Land Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 50(2), pages 242-269, February.
    • Handle: RePEc:kap:jrefec:v:50:y:2015:i:2:p:242-269
    DOI: 10.1007/s11146-014-9455-2
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    Cited by:

    1. Lu, Chien-Lin & Liao, Wen-Chi & Peng, Chien-Wen, 2020. "Developers’ perspectives on timing to build: Evidence from microdata of land acquisition and development," Journal of Housing Economics, Elsevier, vol. 49(C).
    2. Wenjie Wu & Jianghao Wang, 2017. "Gentrification effects of China’s urban village renewals," Urban Studies, Urban Studies Journal Limited, vol. 54(1), pages 214-229, January.
    3. Ke, Yue & Gkritza, Konstantina, 2019. "Light rail transit and housing markets in Charlotte-Mecklenburg County, North Carolina: Announcement and operations effects using quasi-experimental methods," Journal of Transport Geography, Elsevier, vol. 76(C), pages 212-220.
    4. Wenjie Wu & Guanpeng Dong & Wenzhong Zhang, 2017. "The puzzling heterogeneity of amenity capitalization effects on land markets," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 135-153, March.

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    More about this item

    Keywords

    Land markets; Transport infrastructure; China; H41; Q51; R41;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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