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The Train has Left the Station: Real Estate Price Effects of Mainline Realignment in Berlin

Author

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  • Gabriel Ahlfeldt

    () (Chair for Economic Policy, University of Hamburg)

Abstract

While there is an increasing body of literature testing for a correlation between access to regional markets and economic activity, little evidence is available for market access being of causal importance for economic development. This paper investigates the impact of exogenous variation to cities and regions on an urban scale. We study the case of Berlin where the western central business district unexpectedly became disconnected from long-distance railway connections. A combined hedonic and difference-in-difference approach is employed to show that property transaction prices within areas identified to experience a particularly strong decline in accessibility are reduced by approximately 22% after announcement of a new transport plan. We show that this treatment effect is not attributable to effects other than variation of access to cities and regions.

Suggested Citation

  • Gabriel Ahlfeldt, 2008. "The Train has Left the Station: Real Estate Price Effects of Mainline Realignment in Berlin," Working Papers 019, Chair for Economic Policy, University of Hamburg.
  • Handle: RePEc:hce:wpaper:019
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    File URL: http://www.hced.uni-hamburg.de/WorkingPapers/019.pdf
    File Function: First version, 2008
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    Citations

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    Cited by:

    1. Wolfgang Maennig, 2017. "Public Referenda and Public Opinion on Olympic Games," Working Papers 057, Chair for Economic Policy, University of Hamburg.
    2. Franziska K. Kruse & Wolfgang Maennig, 2017. "The future development of world records," Working Papers 061, Chair for Economic Policy, University of Hamburg.
    3. Falch, Torberg & Fischer, Justina A.V., 2012. "Public sector decentralization and school performance: International evidence," Economics Letters, Elsevier, vol. 114(3), pages 276-279.
    4. Wolfgang Maennig, 2017. "Governance in Sports Organizations," Working Papers 060, Chair for Economic Policy, University of Hamburg.
    5. Fischer, Justina AV & Sousa-Poza, Alfonso, 2010. "The impact of institutions on firms’ rejuvenation policies: Early retirement with severance pay versus simple lay-off. A Cross-European Analysis," MPRA Paper 20343, University Library of Munich, Germany.
    6. Ahlfeldt, Gabriel M. & Wendlan, Nicolai, 2008. "Spatial Determinants of CBD Emergence: A Micro-level Case Study on Berlin∗," MPRA Paper 11572, University Library of Munich, Germany.
    7. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2017. "Zoning in reunified Berlin," Working Papers 059, Chair for Economic Policy, University of Hamburg.
    8. Wolfgang Maennig, 2017. "Major Sports Events: Economic Impact," Working Papers 058, Chair for Economic Policy, University of Hamburg.

    More about this item

    Keywords

    Market access variation; hedonic model; difference-in-difference; railway system; Berlin;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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