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Historic Amenities, Income and Sorting of Households

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  • Hans R. A. Koster
  • Piet Rietveld
  • Jos Van Ommeren

Abstract

We test the impact of historic amenities on house prices and sorting of households within cities. Conservation area boundaries enable us to employ a semiparametric regression-discontinuity approach to measure the impact of historic amenities. The approach allows for household-specific preferences. Conditional on neighbour attributes, the price difference at the conservation boundary is about 3 percent. Internal historic amenities are also important, as listed houses are about 6 percent more expensive. It is shown that rich households sort themselves in conservation areas and in listed buildings, because they have a higher willingness to pay for historic amenities. The results contribute to an explanation for the substantial spatial income differences within cities.

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Bibliographic Info

Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0124.

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Date of creation: Jan 2013
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Handle: RePEc:cep:sercdp:0124

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Web page: http://www.spatialeconomics.ac.uk/SERC/publications/default.asp

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Keywords: historic amenities; sorting; conservation areas; semiparametric regression-discontinuity design; hedonic price method;

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Cited by:
  1. Gabriel Ahlfeldt, 2013. "Urbanity," CESifo Working Paper Series 4533, CESifo Group Munich.
  2. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2013. "Urban Renewal after the Berlin Wall," Working Papers 049, Chair for Economic Policy, University of Hamburg.
  3. Gabriel Ahlfeldt & Kristoffer Moeller & Sevrin Waights & Nicolai Wendland, 2013. "The economics of conservation area designation," ERSA conference papers ersa13p87, European Regional Science Association.

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