Maintaining Public Goods: Household Valuation of New and Renovated Local Parks
AbstractThis study re-examines household valuation of local parks to assess the value afforded to specific amenities contained within parks and how those amenities change over time. A large body existing literature studying local parks has found single family residential homeowners are surprisingly willing to pay very little to live in close proximity to these parks. Building on this research, we hypothesize that these results are driven by bundling both positive and negative features of local parks into a single amenity and that these amenities are likely to degrade over time reducing their value. We implement property fixed effects models to investigate if unbundling park attributes leads to significantly different willingness to pay insights relative to much of the existing literature using a unique dataset on park renovations. Using renovation data and a rich set of housing transactions, we further explore whether the values placed on specific park attributes change over time, consistent with a depreciating public asset.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150634.
Date of creation: 2013
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Hedonic; Open space; Local parks; Renovation; Repeat sales; Community/Rural/Urban Development; Consumer/Household Economics; Public Economics; Research and Development/Tech Change/Emerging Technologies;
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