IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37180.html
   My bibliography  Save this paper

A methodological proposal to estimate changes of residential property value: case study developed in Bogota

Author

Listed:
  • Jorge Andres, Perdomo Calvo
  • Jorge Andres, Perdomo Calvo

Abstract

This article is an empirical study of residential land values in the vicinity of the TransMilenio system (Bus Rapid Transit, BRT) in Bogota´ (Colombia). The results have been established through impact evaluation by means of nonparameteric approaches (Propensity Score Matching, PSM) and econometric approaches (Spatial Hedonic Price, SHP) indicating that access to the BRT system generates benefits on the change of property value.

Suggested Citation

  • Jorge Andres, Perdomo Calvo & Jorge Andres, Perdomo Calvo, 2011. "A methodological proposal to estimate changes of residential property value: case study developed in Bogota," MPRA Paper 37180, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:37180
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37180/1/MPRA_paper_37168.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Juan Carlos Mendieta & Jorge Andrés Perdomo, 2007. "Especificación y estimación de un modelo de precios hedónico espacial para evaluar el impacto de Transmilenio sobre el valor de la propiedad en Bogotá," Documentos CEDE 4280, Universidad de los Andes, Facultad de Economía, CEDE.
    2. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    3. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    4. H. William Batt, 2001. "Value Capture as a Policy Tool in Transportation Economics: An Exploration in Public Finance in the Tradition of Henry George," American Journal of Economics and Sociology, Wiley Blackwell, vol. 60(1), pages 195-228, January.
    5. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    6. McDonald, John F. & McMillen, Daniel P., 2000. "Employment Subcenters and Subsequent Real Estate Development in Suburban Chicago," Journal of Urban Economics, Elsevier, vol. 48(1), pages 135-157, July.
    7. McDonald, John F. & Osuji, Clifford I., 1995. "The effect of anticipated transportation improvement on residential land values," Regional Science and Urban Economics, Elsevier, vol. 25(3), pages 261-278, June.
    8. Daniel P. McMillen & John McDonald, 2004. "Reaction of House Prices to a New Rapid Transit Line: Chicago's Midway Line, 1983–1999," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 32(3), pages 463-486, September.
    9. Daniel P. McMillen & John F. McDonald, 2002. "Land Values In A Newly Zoned City," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 62-72, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Perdomo Calvo, Jorge Andrés & Ramírez Orozco, Juan Andrés, 2011. "Análisis económico sobre el tamano óptimo del mercado y ubicación de estaciones de transferencia para el manejo de residuos sólidos en Colombia," Revista Lecturas de Economía, Universidad de Antioquia, CIE, November.
    2. Jorge Andrés Perdomo Calvo & Mariana Rubio, 2012. "Regulación económica para la tarifa de parqueaderos en Bogotá mediante precios máximos," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, December.
    3. Luis Galvis & Bladimir Carrillo, 2013. "Índice de precios espacial para la vivienda urbana en Colombia: una aplicación con métodos de emparejamiento," Revista de Economía del Rosario, Universidad del Rosario, June.
    4. Perdomo, Jorge & Arzuza, Maria, 2014. "Beneficios económicos de Transmetro sobre la reducción de la accidentalidad vial en el área metropolitana de Barranquilla, Colombia," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 82, pages 219-245, August.
    5. Jorge Perdomo & Juan Ramírez, 2011. "Economic Analysis about the Solid Waste Quantities and Optimal Hauling Distance to Install Transfer Stations in Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 75, pages 143-162.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jorge Andres, Perdomo Calvo & Jorge Andres, Perdomo Calvo, 2010. "Una propuesta metodológica para estimar los cambios sobre el valor de la propiedad: estudio de caso para Bogotá aplicando Propensity Score Matching y Precios Hedónicos Espaciales [A Propensity Scor," MPRA Paper 37178, University Library of Munich, Germany.
    2. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease vs. noise: Long-run changes in the value of transport (dis)amenities," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Rodríguez, Daniel A. & Mojica, Carlos H., 2009. "Capitalization of BRT network expansions effects into prices of non-expansion areas," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 560-571, June.
    4. Gabriel M. Ahlfeldt & Volker Nitsch & Nicolai Wendland, 2019. "Ease versus noise: long-run changes in the value of transport (dis)amenities," CEP Discussion Papers dp1631, Centre for Economic Performance, LSE.
    5. Gibbons, Stephen & Machin, Stephen, 2005. "Valuing rail access using transport innovations," Journal of Urban Economics, Elsevier, vol. 57(1), pages 148-169, January.
    6. Diao, Mi & Leonard, Delon & Sing, Tien Foo, 2017. "Spatial-difference-in-differences models for impact of new mass rapid transit line on private housing values," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 64-77.
    7. Yang Xiao & Chris Webster & Scott Orford, 2016. "Identifying house price effects of changes in urban street configuration: An empirical study in Nanjing, China," Urban Studies, Urban Studies Journal Limited, vol. 53(1), pages 112-131, January.
    8. Dubé, Jean & Rosiers, François Des & Thériault, Marius & Dib, Patricia, 2011. "Economic impact of a supply change in mass transit in urban areas: A Canadian example," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 46-62, January.
    9. Ossokina, Ioulia V. & Verweij, Gerard, 2015. "Urban traffic externalities: Quasi-experimental evidence from housing prices," Regional Science and Urban Economics, Elsevier, vol. 55(C), pages 1-13.
    10. Gabriel Ahlfeldt & Volker Nitsch & Nicolai Wendland, 2016. "Ease vs. Noise: On the Conflicting Effects of Transportation Infrastructure," CESifo Working Paper Series 6058, CESifo.
    11. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2020. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 48(3), pages 886-914, September.
    12. 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.
    13. Perdomo, Jorge & Arzuza, Maria, 2014. "Beneficios económicos de Transmetro sobre la reducción de la accidentalidad vial en el área metropolitana de Barranquilla, Colombia," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 82, pages 219-245, August.
    14. Ioulia Ossokina & Gerard Verweij, 2014. "Urban traffic externalities: quasi-experimental evidence from housing prices," CPB Discussion Paper 267.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Perdomo Calvo, Jorge Andrés, 2011. "Una propuesta metodológica para estimar los cambios sobre el valor de la propiedad: estudio de caso para Bogotá aplicando Propensity Score Matching.," Revista Lecturas de Economía, Universidad de Antioquia, CIE, February.
    16. Murakami, Jin & Chang, Zheng, 2018. "Polycentric development under public leasehold: A spatial analysis of commercial land use rights," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 25-36.
    17. Dubé, Jean & Legros, Diègo & Devaux, Nicolas, 2018. "From bus to tramway: Is there an economic impact of substituting a rapid mass transit system? An empirical investigation accounting for anticipation effect," Transportation Research Part A: Policy and Practice, Elsevier, vol. 110(C), pages 73-87.
    18. Hyun, Dongwoo & Milcheva, Stanimira, 2019. "Spatio-temporal effects of an urban development announcement and its cancellation on house prices: A quasi-natural experiment," Journal of Housing Economics, Elsevier, vol. 43(C), pages 23-36.
    19. Devaux, Nicolas & Dubé, Jean & Apparicio, Philippe, 2017. "Anticipation and post-construction impact of a metro extension on residential values: The case of Laval (Canada), 1995–2013," Journal of Transport Geography, Elsevier, vol. 62(C), pages 8-19.
    20. Sun, Weizeng & Zheng, Siqi & Wang, Rui, 2015. "The capitalization of subway access in home value: A repeat-rentals model with supply constraints in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 104-115.

    More about this item

    Keywords

    TransMilenio; Bogota´ ; impact evaluation; propensity score matching; spatial hedonic price; change of property value;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.