The impact of infrastructure setting litigation on residential property values in Paris’s suburban zones
AbstractThe presence of nearby public facility contributes to real-estate’s value, that’s why the market may expect impact of public project on house’s price. But undesirable and semi-desirable facility location choices can be contested by close inhabitants, because they are source of negative externalities or negative expectations. In suburban zones of Paris’s agglomeration, the oppositions to these infrastructures become frequent, and an official project’s announce does not mean automatically its implementation. Through 3 case studies, we explore the way the expectation mechanism is affected by legal conflicts driven by close inhabitants. We suppose that the expectation process depends on the to-be-realized-chance of the project. As the conflict activities amplify or reduce the certainty on the new facility’s arrival, market’s perception on the infrastructure varies among the different periods of conflicts. The variation is captured by our hedonic model.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/5658.
Date of creation: Jun 2010
Date of revision:
market’s expectation; facility setting conflict; house’s price;
Find related papers by JEL classification:
- H76 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Other Expenditure Categories
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
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