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Spatial effects in housing price models : do housing prices capitalize urban development policies in the agglomeration of Dijon (1999) ?

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  • Catherine Baumont

    (LEG - Laboratoire d'Economie et de Gestion - UB - Université de Bourgogne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this article we suppose that the integration of accessibility and neighborhood variables in hedonic housing models doesn't allow to take into account the spatial effects between the housing prices. Using a sample of 1520 transactions of apartments in the urban area of Dijon, we focus on two types of location variables : the distance to the CBD and the distance to several Disadvantaged Districts located in peripheral areas. We detect the presence of a spatial error autocorrelation in the hedonic model indicating that the valuation of the price of an apartment is locally influenced by the prices of the neighboring apartments. Then, we estimate a spatial error model which shows that the local effect is positive and significant and thatthe location variables remain significant : housing prices are positively influenced by the accessibility to the CBD but are negatively influenced by the proximity to a D-District.

Suggested Citation

  • Catherine Baumont, 2004. "Spatial effects in housing price models : do housing prices capitalize urban development policies in the agglomeration of Dijon (1999) ?," Working Papers hal-01525664, HAL.
    • Handle: RePEc:hal:wpaper:hal-01525664
    Note: View the original document on HAL open archive server: https://hal.science/hal-01525664
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