If we build, will they pay?: predicting property price effects of transport innovations
In this study I develop a partial equilibrium approach for the prediction of property price effects of transport network extensions. It combines a gravity-type labor market accessibility indicator with a transport decision model that takes into account the urban rail network architecture, allows for mode switching and relaxes the assumption that stations represent perfect substitutes. The model is calibrated to the Greater London Area and is used to predict property price effects of the 1999 Jubilee Line and DLR extension. A considerable degree of heterogeneity is predicted both in terms of the magnitude as well as the spatial extent of price effects around new stations. A quasi-experimental property price analysis reveals that the model performs well in predicting the observed average accessibility effect. Relative transport costs associated with distinct transport modes are identified from the data by calibrating the model of observed property price adjustments.
|Date of creation:||Mar 2011|
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- Ahlfeldt, Gabriel M. & Feddersen, Arne, 2010.
"From Periphery to Core: Economic Adjustments to High Speed Rail,"
25106, University Library of Munich, Germany.
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"Looming stations: valuing transport innovations in historical context,"
LSE Research Online Documents on Economics
25514, London School of Economics and Political Science, LSE Library.
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"How polycentric is a monocentric city? The role of agglomeration economies,"
24078, University Library of Munich, Germany.
- Nicolai Wendland, 2011. "How Polycentric is a Monocentric City? The Role of Agglomeration Economies," ERSA conference papers ersa11p218, European Regional Science Association.
- Gabriel M. Ahlfeldt & Nicolai Wendland, 2010. "How Polycentric is a Monocentric City? The Role of Agglomeration Economies," EERI Research Paper Series EERI_RP_2010_24, Economics and Econometrics Research Institute (EERI), Brussels.
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- repec:dgr:uvatin:20040023 is not listed on IDEAS
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- Gabriel Ahlfeldt, 2011. "If Alonso Was Right: Modeling Accessibility And Explaining The Residential Land Gradient," Journal of Regional Science, Wiley Blackwell, vol. 51(2), pages 318-338, 05.
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"The Train has Left the Station: Do Markets Value Intracity Access to Intercity Rail Connections?,"
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- Ahlfeldt, Gabriel M., 2009. "The train has left the station: Do markets value intra-city access to inter-city rail connections?," MPRA Paper 13900, University Library of Munich, Germany.
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- Gabriel M. Ahlfeldt & Arne Feddersen, 2010. "From periphery to core: economic adjustments to high speed rail," Working Papers 2010/38, Institut d'Economia de Barcelona (IEB).
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