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Effects on housing prices of urban attraction and labor market accessibility




Through a hedonic approach this study primarily focuses on how house prices vary systematically with respect to some general spatial structure characteristics in a Norwegian region. The introduction of a gravity based labor market accessibility measure contributes significantly to explain variation in housing prices, also in a model formulation where the distance from the city center is accounted for. Based on these results we suggest a distinction between an urban attraction effect and a labor market accessibility effect. Quantitatively, the two distinct effects are found to contribute about equally to intraregional variation in housing prices.

Suggested Citation

  • Osland, Liv & Thorsen, Inge, 2005. "Effects on housing prices of urban attraction and labor market accessibility," Working Papers in Economics 17/05, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2005_017

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    References listed on IDEAS

    1. 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.
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    Cited by:

    1. Liv Osland & Inge Thorsen, 2006. "Evaluating Housing Price Predictability of Alternative Hedonic Model Formulations," ERSA conference papers ersa06p492, European Regional Science Association.
    2. Liv Osland & Inge Thorsen, 2006. "Testing for the Impact of Local Labour Market Characteristics on House Prices," ERSA conference papers ersa06p490, European Regional Science Association.

    More about this item


    house prices; urban attraction; labor market accessibility; hedonic approach; price and accessibility gradients;

    JEL classification:

    • 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


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