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Spatial effects in housing price models. Do housing prices capitalize urban development policies in the agglomeration of Dijon (1999)?

  • BAUMONT, Catherine


    (LEG - CNRS UMR 5118 - MSH - Université de Bourgogne)

In this article we suppose that the integration of accessibility and neighborhood variables in hedonic housing models doesn't allow to take into account the spatial effects between the housing prices. Using a sample of 1520 transactions of apartments in the urban area of Dijon, we focus on two types of location variables : the distance to the CBD and the distance to several Disadvantaged Districts located in peripheral areas. We detect the presence of a spatial error autocorrelation in the hedonic model indicating that the valuation of the price of an apartment is locally influenced by the prices of the neighboring apartments. Then, we estimate a spatial error model which shows that the local effect is positive and significant and that the location variables remain significant : housing prices are positively influenced by the accessibility to the CBD but are negatively influenced by the proximity to a D-District. / L'objectif de cet article est de montrer comment l'influence du voisinage peut être intégrée dans les modèles hédoniques de prix immobiliers. Deux approches complémentaires sont utilisées. Des variables explicatives d'accessibilité au CBD, d'appartenance aux quartiers sensibles et de proximité aux quartiers sensibles sont intégrées dans les spécifications hédoniques que nous estimons : les effets "globaux" de ces variables peuvent donc être appréciés. Nous estimons ces modèles hédoniques en tenant compte des effets de dépendance spatiale susceptibles d'exister entre les prix des propriétés voisines : un effet local de voisinage est alors supposé sous la forme d'une autocorrélation spatiale dans les modèles hédoniques estimés. Cette démarche est appliquée à un échantillon de 1520 transactions d'appartements sur la Communauté de l'Agglomération Dijonnaise en 1999 et permet de montrer qu'un effet de dépendance spatiale existe entre les prix immobiliers : le modèle hédonique approprié à estimer est un modèle spatial avec autocorrélation des erreurs. Cet effet spatial existe alors même que les variables explicatives d'accessibilité au CBD et de proximité avec les quartiers d'habitat social sont intégrées dans le modèle hédonique. Nous montrons que l'effet spatial local est positif et que les prix des appartements décroissent quand la distance au CBD augmente, que l'appartenance à un quartier d'habitat social déprécie ces prix et que la proximité à un tel quartier a également un effet négatif sur les valeurs des transactions.

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Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2004-04.

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Length: 26 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:lat:legeco:2004-04
Contact details of provider: Postal: Pôle d'Economie et de Gestion - 2, bd Gabriel - BP 26611 - F-21066 Dijon cedex - France
Phone: 00 333 80 39 54 41
Fax: 00 333 80 39 54 43
Web page:

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  1. Dubin, Robin A., 1992. "Spatial autocorrelation and neighborhood quality," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 433-452, September.
  2. 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.
  3. BAUMONT, Catherine & BOURDON, Françoise, 2002. "Centres secondaires et recomposition économique des espaces urbains.Le cas de la Communauté de l'Agglomération Dijonnaise (1990 ; 1999)," LATEC - Document de travail - Economie (1991-2003) 2002-04, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
  4. Raymond J.G.M. Florax & Hendrik Folmer & Sergio J. Rey, 2002. "Specification Searches in Spatial Econometrics: The Relevance of Hendry's Methodology," Urban/Regional 0202001, EconWPA.
  5. Kevin Gillen & Thomas Thibodeau & Susan Wachter, . "Anistropic Autocorrelation in House Prices," Zell/Lurie Center Working Papers 383, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
  6. Basu, Sabyasachi & Thibodeau, Thomas G, 1998. "Analysis of Spatial Autocorrelation in House Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 61-85, July.
  7. Florax, R. & Folmer, H., 1991. "Specification and Estimation of Spatial Linear Regression Models: Monte Carlo Evaluation of Pre-Test Estimator," Mansholt Working Papers 1991-4, Wageningen University, Mansholt Graduate School of Social Sciences.
  8. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-75, June.
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