IDEAS home Printed from https://ideas.repec.org/p/col/000089/013133.html
   My bibliography  Save this paper

The Effect of Commuting Costs to Employment Centers on Urban Property Values: A Spatial Analysis in Bogot√°, Colombia

Author

Listed:
  • Fernando Carriazo
  • Julian PeÔøΩaranda

Abstract

We study the effect that changes of commuting costs to intra urban employment centers may have on property prices in Bogot√°, Colombia. To explore the relationship between prices and communing costs, we use a difference in difference spatial model. Parametric and non-parametric estimations suggest a negative and significant impact of commuting costs on property values for dwellings far away from employment centers. The estimated price elasticity with respect to commuting costs for housing located in distant zones, indicates that a 1% increase in fuel price, reduces property values in 1.48%. Non-parametric Geographically Weighted Regression (GWR) showed to outperform traditional Spatial Autoregressive (SAR, SEM) models.

Suggested Citation

  • Fernando Carriazo & Julian PeÔøΩaranda, 2015. "The Effect of Commuting Costs to Employment Centers on Urban Property Values: A Spatial Analysis in Bogot√°, Colombia," Documentos CEDE 13133, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:013133
    as

    Download full text from publisher

    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/8596/dcede2015-23.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carriazo, Fernando & Ready, Richard & Shortle, James, 2013. "Using stochastic frontier models to mitigate omitted variable bias in hedonic pricing models: A case study for air quality in Bogotá, Colombia," Ecological Economics, Elsevier, vol. 91(C), pages 80-88.
    2. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
    3. Giuliano, Genevieve & Small, Kenneth A., 1991. "Subcenters in the Los Angeles Region," University of California Transportation Center, Working Papers qt6ts0t95w, University of California Transportation Center.
    4. McMillen, Daniel P., 1996. "One Hundred Fifty Years of Land Values in Chicago: A Nonparametric Approach," Journal of Urban Economics, Elsevier, vol. 40(1), pages 100-124, July.
    5. Giuliano, Genevieve & Small, Kenneth A., 1991. "Subcenters in the Los Angeles Region," University of California Transportation Center, Working Papers qt7xv976dj, University of California Transportation Center.
    6. 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..
    7. Jan K. Brueckner & Yves Zenou, 2003. "Space and Unemployment: The Labor-Market Effects of Spatial Mismatch," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 242-262, January.
    8. Acharya, Gayatri & Bennett, Lynne Lewis, 2001. "Valuing Open Space and Land-Use Patterns in Urban Watersheds," The Journal of Real Estate Finance and Economics, Springer, vol. 22(2-3), pages 221-237, March-May.
    9. Jian Zhou & Daniel P. McMillen & John F. McDonald, 2008. "Land Values and the 1957 Comprehensive Amendment to the Chicago Zoning Ordinance," Urban Studies, Urban Studies Journal Limited, vol. 45(8), pages 1647-1661, July.
    10. Guangqing Chi & David Marcouiller, 2011. "Isolating the Effect of Natural Amenities on Population Change at the Local Level," Regional Studies, Taylor & Francis Journals, vol. 45(4), pages 491-505.
    11. Yinger, John, 1992. "City and suburb: Urban models with more than one employment center," Journal of Urban Economics, Elsevier, vol. 31(2), pages 181-205, March.
    12. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
    13. Coulson, N. Edward & Engle, Robert F., 1987. "Transportation costs and the rent gradient," Journal of Urban Economics, Elsevier, vol. 21(3), pages 287-297, May.
    14. Christopher F. Parmeter & Jaren C. Pope, 2013. "Quasi-experiments and hedonic property value methods," Chapters, in: John A. List & Michael K. Price (ed.), Handbook on Experimental Economics and the Environment, chapter 1, pages 3-66, Edward Elgar Publishing.
    15. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-177, March.
    16. Giuliano, Genevieve & Small, Kenneth A., 1991. "Subcenters in the Los Angeles region," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 163-182, July.
    17. 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.
    18. 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.
    19. 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.
    20. Wheaton, William C., 1974. "A comparative static analysis of urban spatial structure," Journal of Economic Theory, Elsevier, vol. 9(2), pages 223-237, October.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    3. Rodger Barros Antunes Campos & André Luis Squarize Chagas, 2019. "Employment Sub-Centers in a Megacity from a Developing Country: The Case of the Municipality of São Paulo, Brazil," TD NEREUS 5-2019, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    4. 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.
    5. Plaut, Pnina Ohanna & Plaut, Steven E., 1998. "Endogenous Identification of Multiple Housing Price Centers in Metropolitan Areas," Journal of Housing Economics, Elsevier, vol. 7(3), pages 193-217, September.
    6. 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.
    7. Ivan Muñiz & Anna Galindo & Miguel Angel García, 2005. "Descentralisation, Integration and polycentrism in Barcelona," Working Papers wpdea0512, Department of Applied Economics at Universitat Autonoma of Barcelona.
    8. Liv Osland & Inge Thorsen, 2013. "Spatial Impacts, Local Labour Market Characteristics and Housing Prices," Urban Studies, Urban Studies Journal Limited, vol. 50(10), pages 2063-2083, August.
    9. McMillen, Daniel P. & Smith, Stefani C., 2003. "The number of subcenters in large urban areas," Journal of Urban Economics, Elsevier, vol. 53(3), pages 321-338, May.
    10. Jaume Masip Tresserra, 2012. "Identifying the Employment and Population Centers at regional and metropolitan scale: The Case of Catalonia and Barcelona," ERSA conference papers ersa12p70, European Regional Science Association.
    11. Miguel Ángel García & Ivan Muñiz, 2005. "El impacto espacial de las economías de aglomeración y su efecto sobre la estructura urbana.El caso de la industria en Barcelona, 1986-1996," Working Papers wpdea0509, Department of Applied Economics at Universitat Autonoma of Barcelona.
    12. Reeves, Tyler & Mei, Bin & Siry, Jacek & Bettinger, Pete & Ferreira, Susana, 2020. "Effect of working forest conservation easements on surrounding property values," Forest Policy and Economics, Elsevier, vol. 118(C).
    13. Catherine Baumont & Françoise Bourdon, 2002. "Centres secondaires et recomposition économique des espaces urbains," Working Papers hal-01544523, HAL.
    14. Rémy Le Boennec, 2014. "Nouvelles centralités, choix modal et politiques de déplacements " 2.0 " : Le cas Nantais," Working Papers hal-00958700, HAL.
    15. Ottensmann, John R. & Payton, Seth & Man, Joyce, 2008. "Urban Location and Housing Prices within a Hedonic Model," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(01), pages 1-17.
    16. LE BOENNEC, Rémy & SARI, Florent, 2015. "Nouvelles centralités, choix modal et politiques de déplacements : le cas nantais," MPRA Paper 109261, University Library of Munich, Germany.
    17. Gregmar I. Galinato & Pitchayaporn Tantihkarnchana, 2018. "The amenity value of climate change across different regions in the United States," Applied Economics, Taylor & Francis Journals, vol. 50(37), pages 4024-4039, August.
    18. Alperovich, Gershon & Deutsch, Joseph, 1996. "Urban structure with two coexisting and almost completely segregated populations: The case of East and West Jerusalem," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 171-187, April.
    19. Grover,Arti & Lall,Somik V., 2016. "Jobs in the city : explaining urban spatial structure in Kampala," Policy Research Working Paper Series 7655, The World Bank.
    20. Manuel Artís & Javier Romaní & Jordi Suriñach, 2000. "Determinants of Individual Commuting in Catalonia, 1986-91: Theory and Empirical Evidence," Urban Studies, Urban Studies Journal Limited, vol. 37(8), pages 1431-1450, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

    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:col:000089:013133. 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: Universidad De Los Andes-Cede (email available below). General contact details of provider: https://edirc.repec.org/data/ceandco.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.