Estimation of a spatial simultaneous equation model of population migration and housing price dynamics
Identifying the local interactions between housing prices and population migration is complicated by their simultaneous and spatially interdependent relationship. Higher housing prices may repel households and push them into neighboring areas, suggesting that separately identifying interactions within versus across local neighborhoods is important. Aggregate data and standard econometric models are unable to address the multiple identification problems that may arise from the simultaneity, spatial interaction, and unobserved spatial autocorrelation. Such problems can generate biased estimates that run counter to economic theory. Using Michigan census tract-level data, we estimate a spatial simultaneous equations model that jointly considers population change and housing values, while also explicitly modeling interactions within neighborhoods, spatial interactions across neighborhoods, and controlling for unobserved spatial correlations. After controlling for simultaneity and spatial autocorrelation, the results show that neighborhoods are likely to experience an increase in their housing values if they gain population and they are more likely to lose population if they experience an increase in housing values. Our results are consistent with theory and underscore the importance of accounting for spatial interdependencies between population change and housing values.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
- Gudmundur F Ulfarsson & John I Carruthers, 2006. "The cycle of fragmentation and sprawl: a conceptual framework and empirical model," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 33(5), pages 767-788, September.
- Hailu, Yohannes G. & Rosenberger, Randall S., 2004. "Modeling Migration Effects on Agricultural Lands: A Growth Equilibrium Model," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(1), April.
- Mindy S. Crandall & Bruce A. Weber, 2004. "Local Social and Economic Conditions, Spatial Concentrations of Poverty, and Poverty Dynamics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1276-1281.
- Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008.
"Lost in space: population growth in the American hinterlands and small cities,"
Journal of Economic Geography,
Oxford University Press, vol. 8(6), pages 727-757, November.
- Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2007. "Lost in Space: Population Dynamics in the American Hinterlands and Small Cities," Economics Working Paper Series 0707, Oklahoma State University, Department of Economics and Legal Studies in Business.
- Roback, Jennifer, 1988. "Wages, Rents, and Amenities: Differences among Workers and Regions," Economic Inquiry, Western Economic Association International, vol. 26(1), pages 23-41, January.
- Hanna, Brid Gleeson, 2007. "House values, incomes, and industrial pollution," Journal of Environmental Economics and Management, Elsevier, vol. 54(1), pages 100-112, July.
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- repec:hoo:wpaper:e-95-4 is not listed on IDEAS
- McGranahan, David A., 1999. "Natural Amenities Drive Rural Population Change," Agricultural Economics Reports 33955, United States Department of Agriculture, Economic Research Service.
- Kim, Chong Won & Phipps, Tim T. & Anselin, Luc, 1998.
"Measuring The Benefits Of Air Quality Improvement: A Spatial Hedonic Approach,"
1998 Annual meeting, August 2-5, Salt Lake City, UT
20959, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Won Kim, Chong & Phipps, Tim T. & Anselin, Luc, 2003. "Measuring the benefits of air quality improvement: a spatial hedonic approach," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 24-39, January.
- Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008.
"The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach,"
University of Wisconsin Press, vol. 84(2), pages 241-266.
- Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2007. "The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach," Economics Working Paper Series 0704, Oklahoma State University, Department of Economics and Legal Studies in Business.
- Cameron, Gavin & Muellbauer, John, 1998.
"The Housing Market and Regional Commuting and Migration Choices,"
Scottish Journal of Political Economy,
Scottish Economic Society, vol. 45(4), pages 420-46, September.
- Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," CEPR Discussion Papers 1945, C.E.P.R. Discussion Papers.
- Boarnet, Marlon G. & Chalermpong, Saksith & Geho, Elizabeth, 2001.
"Specification Issues in Models of Population and Employment Growth,"
University of California Transportation Center, Working Papers
qt5fn0m74n, University of California Transportation Center.
- Marlon G. Boarnet & Saksith Chalermpong & Elizabeth Geho, 2005. "Specification issues in models of population and employment growth," Papers in Regional Science, Wiley Blackwell, vol. 84(1), pages 21-46, 03.
- Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
- Graves, Philip E., 1983. "Migration with a composite amenity: the role of rents," MPRA Paper 19917, University Library of Munich, Germany.
- Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-50, November.
- Edward L. Glaeser & Jose A. Scheinkman & Andrei Shleifer, 1995.
"Economic Growth in a Cross-Section of Cities,"
NBER Working Papers
5013, National Bureau of Economic Research, Inc.
- Glaeser, E.L. & Scheinkman, J.A., 1993. "Economic Growth in a Cross-Section of Cities," Harvard Institute of Economic Research Working Papers 1645, Harvard - Institute of Economic Research.
- Mark Ferguson & Kamar Ali & M. Rose Olfert & Mark Partridge, 2007. "Voting with Their Feet: Jobs versus Amenities," Growth and Change, Wiley Blackwell, vol. 38(1), pages 77-110.
- Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
- Rappaport, Jordan, 2008. "Consumption amenities and city population density," Regional Science and Urban Economics, Elsevier, vol. 38(6), pages 533-552, November.
- Potepan, Michael J., 1994. "Intermetropolitan Migration and Housing Prices: Simultaneously Determined?," Journal of Housing Economics, Elsevier, vol. 3(2), pages 77-91, June.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:40:y:2010:i:5:p:343-352. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.