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

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  • Jorge Perdomo

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 Perdomo, 2011. "A methodological proposal to estimate changes of residential property value: case study developed in Bogota," Applied Economics Letters, Taylor & Francis Journals, vol. 18(16), pages 1577-1581.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:16:p:1577-1581
    DOI: 10.1080/13504851.2011.554360
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    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)

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    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. 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.
    3. 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.
    4. 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.
    5. 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.

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    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

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