IDEAS home Printed from https://ideas.repec.org/a/taf/chosxx/v32y2017i4p449-469.html
   My bibliography  Save this article

Are valuations of place-based amenities driven by scale?

Author

Listed:
  • Pia Nilsson

Abstract

Amenities play an important role in explaining regional attractiveness as they increase the competition between places and the demand for housing. This paper contributes to the literature on valuations of place-based amenities by estimating hedonic prices for a differentiated set of amenities, and by examining the link between urban density and amenity valuations. The empirical analysis is based on a sample of 8319 single-family home sales observed during the period 2001–2011. Results show that amenities are valued differently depending on their size, the relationship between size and distance and neighbourhood characteristics. Differentiating among a set of nature- and culture based amenities shows that it is profoundly the value of proximity to open space that vary with neighbourhood density. Results are robust when testing for non-constant implicit prices over different time periods and novel to the literature on valuation of open spaces using the hedonic price model.

Suggested Citation

  • Pia Nilsson, 2017. "Are valuations of place-based amenities driven by scale?," Housing Studies, Taylor & Francis Journals, vol. 32(4), pages 449-469, May.
    • Handle: RePEc:taf:chosxx:v:32:y:2017:i:4:p:449-469
    DOI: 10.1080/02673037.2016.1219330
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/02673037.2016.1219330
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02673037.2016.1219330?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Falck, Oliver & Fritsch, Michael & Heblich, Stephan, 2011. "The phantom of the opera: Cultural amenities, human capital, and regional economic growth," Labour Economics, Elsevier, vol. 18(6), pages 755-766.
    2. John M. Clapp & Stephen L. Ross, 2004. "Schools and Housing Markets: An Examination of School Segregation and Performance in Connecticut," Economic Journal, Royal Economic Society, vol. 114(499), pages 425-440, November.
    3. Allen Lynch & David Rasmussen, 2001. "Measuring the impact of crime on house prices," Applied Economics, Taylor & Francis Journals, vol. 33(15), pages 1981-1989.
    4. Gregory K. Ingram, 1998. "Patterns of Metropolitan Development: What Have We Learned?," Urban Studies, Urban Studies Journal Limited, vol. 35(7), pages 1019-1035, June.
    5. Harsman Bjorn & Quigley John M., 1995. "The Spatial Segregation of Ethnic and Demographic Groups: Comparative Evidence from Stockholm and San Francisco," Journal of Urban Economics, Elsevier, vol. 37(1), pages 1-16, January.
    6. Goodman, Allen C. & Thibodeau, Thomas G., 2003. "Housing market segmentation and hedonic prediction accuracy," Journal of Housing Economics, Elsevier, vol. 12(3), pages 181-201, September.
    7. Partridge, Mark D. & Rickman, Dan S. & Ali, Kamar & Olfert, M. Rose, 2009. "Agglomeration spillovers and wage and housing cost gradients across the urban hierarchy," Journal of International Economics, Elsevier, vol. 78(1), pages 126-140, June.
    8. Jordan Rappaport, 2009. "The increasing importance of quality of life -super-†," Journal of Economic Geography, Oxford University Press, vol. 9(6), pages 779-804, November.
    9. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    10. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do the Poor Live in Cities?," NBER Working Papers 7636, National Bureau of Economic Research, Inc.
    11. Seong-Hoon Cho & Seung Gyu Kim & Roland Roberts, 2011. "Values of environmental landscape amenities during the 2000-2006 real estate boom and subsequent 2008 recession," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(1), pages 71-91.
    12. Clapp, John M. & Wang, Yazhen, 2006. "Defining neighborhood boundaries: Are census tracts obsolete?," Journal of Urban Economics, Elsevier, vol. 59(2), pages 259-284, March.
    13. David Mcgranahan & Timothy Wojan, 2007. "Recasting the Creative Class to Examine Growth Processes in Rural and Urban Counties," Regional Studies, Taylor & Francis Journals, vol. 41(2), pages 197-216.
    14. Bourassa, Steven C. & Hoesli, Martin & Peng, Vincent S., 2003. "Do housing submarkets really matter?," Journal of Housing Economics, Elsevier, vol. 12(1), pages 12-28, March.
    15. Halvorsen, Robert & Pollakowski, Henry O., 1981. "Choice of functional form for hedonic price equations," Journal of Urban Economics, Elsevier, vol. 10(1), pages 37-49, July.
    16. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    17. Wu, JunJie & Plantinga, Andrew J., 2003. "The influence of public open space on urban spatial structure," Journal of Environmental Economics and Management, Elsevier, vol. 46(2), pages 288-309, September.
    18. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
    19. Elena G. Irwin, 2002. "The Effects of Open Space on Residential Property Values," Land Economics, University of Wisconsin Press, vol. 78(4), pages 465-480.
    20. 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..
    21. Christopher Bitter & Gordon Mulligan & Sandy Dall’erba, 2007. "Incorporating spatial variation in housing attribute prices: a comparison of geographically weighted regression and the spatial expansion method," Journal of Geographical Systems, Springer, vol. 9(1), pages 7-27, April.
    22. Cheshire, Paul & Sheppard, Stephen, 1995. "On the Price of Land and the Value of Amenities," Economica, London School of Economics and Political Science, vol. 62(246), pages 247-267, May.
    23. Brent L. Mahan & BStephen Polasky & Richard M. Adams, 2000. "Valuing Urban Wetlands: A Property Price Approach," Land Economics, University of Wisconsin Press, vol. 76(1), pages 100-113.
    24. Freeman, A Myrick, III, 1979. " Hedonic Prices, Property Values and Measuring Environmental Benefits: A Survey of the Issues," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 154-173.
    25. Colin Jones, 2002. "The Definition of Housing Market Areas and Strategic Planning," Urban Studies, Urban Studies Journal Limited, vol. 39(3), pages 549-564, March.
    26. Bjorn Harsman, 2006. "Ethnic Diversity and Spatial Segregation in the Stockholm Region," Urban Studies, Urban Studies Journal Limited, vol. 43(8), pages 1341-1364, July.
    27. David E. Andersson, 2000. "Hypothesis testing in hedonic price estimation - On the selection of independent variables," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 293-304.
    28. Robin A. Dubin & Chein-Hsing Sung, 1987. "Spatial Variation in the Price of Housing: Rent Gradients in Non-Monocentric Cities," Urban Studies, Urban Studies Journal Limited, vol. 24(3), pages 193-204, June.
    29. Craig A Watkins, 2001. "The Definition and Identification of Housing Submarkets," Environment and Planning A, , vol. 33(12), pages 2235-2253, December.
    30. Mills, Edwin S. & Simenauer, Ronald, 1996. "New Hedonic Estimates of Regional Constant Quality House Prices," Journal of Urban Economics, Elsevier, vol. 39(2), pages 209-215, March.
    31. E Heikkila & P Gordon & J I Kim & R B Peiser & H W Richardson & D Dale-Johnson, 1989. "What Happened to the CBD-Distance Gradient?: Land Values in a Policentric City," Environment and Planning A, , vol. 21(2), pages 221-232, February.
    32. Germán M. Izón & Michael S. Hand & Daniel W. Mccollum & Jennifer A. Thacher & Robert P. Berrens, 2016. "Proximity to Natural Amenities: A Seemingly Unrelated Hedonic Regression Model with Spatial Durbin and Spatial Error Processes," Growth and Change, Wiley Blackwell, vol. 47(4), pages 461-480, December.
    33. Poudyal, Neelam C. & Hodges, Donald G. & Tonn, Bruce & Cho, Seong-Hoon, 2009. "Valuing diversity and spatial pattern of open space plots in urban neighborhoods," Forest Policy and Economics, Elsevier, vol. 11(3), pages 194-201, May.
    34. Cho, Seong-Hoon & Poudyal, Neelam C. & Roberts, Roland K., 2008. "Spatial analysis of the amenity value of green open space," Ecological Economics, Elsevier, vol. 66(2-3), pages 403-416, June.
    35. Chunhua Wang & JunJie Wu, 2011. "Natural amenities, increasing returns and urban development," Journal of Economic Geography, Oxford University Press, vol. 11(4), pages 687-707, July.
    36. Antonio Páez & Fei Long & Steven Farber, 2008. "Moving Window Approaches for Hedonic Price Estimation: An Empirical Comparison of Modelling Techniques," Urban Studies, Urban Studies Journal Limited, vol. 45(8), pages 1565-1581, July.
    37. Goodman, Allen C. & Thibodeau, Thomas G., 1998. "Housing Market Segmentation," Journal of Housing Economics, Elsevier, vol. 7(2), pages 121-143, June.
    38. Geoghegan, Jacqueline & Wainger, Lisa A. & Bockstael, Nancy E., 1997. "Spatial landscape indices in a hedonic framework: an ecological economics analysis using GIS," Ecological Economics, Elsevier, vol. 23(3), pages 251-264, December.
    39. Bates, Laurie J. & Santerre, Rexford E., 2001. "The Public Demand for Open Space: The Case of Connecticut Communities," Journal of Urban Economics, Elsevier, vol. 50(1), pages 97-111, July.
    40. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    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. Ming Li & Guojun Zhang & Yunliang Chen & Chunshan Zhou, 2019. "Evaluation of Residential Housing Prices on the Internet: Data Pitfalls," Complexity, Hindawi, vol. 2019, pages 1-15, February.
    2. Liebelt, Veronika & Bartke, Stephan & Schwarz, Nina, 2018. "Revealing Preferences for Urban Green Spaces: A Scale-sensitive Hedonic Pricing Analysis for the City of Leipzig," Ecological Economics, Elsevier, vol. 146(C), pages 536-548.

    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. Waltert, Fabian & Schläpfer, Felix, 2010. "Landscape amenities and local development: A review of migration, regional economic and hedonic pricing studies," Ecological Economics, Elsevier, vol. 70(2), pages 141-152, December.
    2. Mikaela Backman & Pia Nilsson, 2018. "The role of cultural heritage in attracting skilled individuals," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(1), pages 111-138, February.
    3. Özge Öner, 2017. "Retail city: the relationship between place attractiveness and accessibility to shops," Spatial Economic Analysis, Taylor & Francis Journals, vol. 12(1), pages 72-91, January.
    4. Poudyal, Neelam C. & Hodges, Donald G. & Tonn, Bruce & Cho, Seong-Hoon, 2009. "Valuing diversity and spatial pattern of open space plots in urban neighborhoods," Forest Policy and Economics, Elsevier, vol. 11(3), pages 194-201, May.
    5. Hao Huang & Jianyi Li, 2021. "The spatial variation of moderating effects of density and natural amenities on housing prices in Wuhan, China," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1778-1804, December.
    6. Sanglim Yoo & John E. Wagner, 2016. "A review of the hedonic literatures in environmental amenities from open space: a traditional econometric vs. spatial econometric model," International Journal of Urban Sciences, Taylor & Francis Journals, vol. 20(1), pages 141-166, March.
    7. Fabian Waltert & Felix Schlaepfer, 2007. "The role of landscape amenities in regional development: a survey of migration, regional economic and hedonic pricing studies," SOI - Working Papers 0710, Socioeconomic Institute - University of Zurich.
    8. Cheshire, Paul, 2009. "Policies for mixed communities: faith-based displacement activity?," LSE Research Online Documents on Economics 30783, London School of Economics and Political Science, LSE Library.
    9. Beal-Hodges, Mary, 2012. "Conservation land acquisition lists and nearby property values: evidence from the Florida Forever programme," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 114(1), pages 1-8.
    10. JunJie Wu & Richard M. Adams & Andrew J. Plantinga, 2004. "Amenities in an Urban Equilibrium Model: Residential Development in Portland, Oregon," Land Economics, University of Wisconsin Press, vol. 80(1), pages 19-32.
    11. Anderson, Soren T. & West, Sarah E., 2006. "Open space, residential property values, and spatial context," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 773-789, November.
    12. Öner, Özge, 2013. "RETAIL CITY: Does accessibility to shops explain place attractiveness?," Working Paper Series in Economics and Institutions of Innovation 335, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    13. Wenjie Wu & Guanpeng Dong & Wenzhong Zhang, 2017. "The puzzling heterogeneity of amenity capitalization effects on land markets," Papers in Regional Science, Wiley Blackwell, vol. 96, pages 135-153, March.
    14. Neil Metz, 2017. "Value for Open Space: Protection and Access Level," Growth and Change, Wiley Blackwell, vol. 48(1), pages 127-152, March.
    15. Abbott, Joshua K. & Klaiber, H. Allen, 2010. "Is all space created equal? Uncovering the relationship between competing land uses in subdivisions," Ecological Economics, Elsevier, vol. 70(2), pages 296-307, December.
    16. Caruso, Geoffrey & Peeters, Dominique & Cavailhes, Jean & Rounsevell, Mark, 2007. "Spatial configurations in a periurban city. A cellular automata-based microeconomic model," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 542-567, September.
    17. Jan Rouwendal & Ramona van Marwijk & Or Levkovich, 2014. "The Value of Proximity to Water in Residential Areas," Tinbergen Institute Discussion Papers 14-047/VIII, Tinbergen Institute.
    18. Füss, Roland & Koller, Jan A., 2016. "The role of spatial and temporal structure for residential rent predictions," International Journal of Forecasting, Elsevier, vol. 32(4), pages 1352-1368.
    19. Cheshire, Paul, 2009. "Urban land markets and policy failures," LSE Research Online Documents on Economics 30837, London School of Economics and Political Science, LSE Library.
    20. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.

    More about this item

    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:taf:chosxx:v:32:y:2017:i:4:p:449-469. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/chos20 .

    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.