The purpose of this research is to estimate the effects of highway development projects on the price of housing. Transportation development projects, highways in particular, improve a certain area's accessibility but also increase its levels of exposure to traffic intensity and noise pollution. These externalities are evaluated by homeowners and residents and are reflected in the price of housing. In this paper, we use several repeat sales model specifications, including difference-in-differences estimators, and control for neighborhood effects to examine housing price trends in the municipalities around two newly developed highways in the Netherlands. The results of the research demonstrate that changes in accessibility result in a significant positive effect on the price of housing in nearby municipalities, but that increased noise pollution and traffic intensity levels result in a decrease in prices. The findings also confirm that combining the total effects of all externalities, the effect of highway development on the price of housing is generally positive, and this effect is salient even before the project is completed due to public anticipation effects.
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We study the role of land development restrictions for the effects of highway expansion on the spatial distribution of population for the Netherlands. Introducing an IV approach to address multiple endogenous interaction variables, our findings show that new highways accelerated population growth in peripheral areas, but had no apparent effect in suburban municipalities, in line with the presence of development restrictions. Highway expansions caused a ‘leapfrog’ pattern in which suburban growth skipped development-restricted areas and expanded into farther located peripheral areas.
Proximity to water is appreciated by households. Hedonic analyses that try to measure the value of this amenity are potentially biased by omitted variables because locations close to water may be selected by households with higher incomes who construct more luxury houses. Because it is difficult to observe all the relevant characteristics, the coefficient for proximity to water may be biased upwards. We circumvent this problem by exploiting a specific characteristic of the Dutch system of planned residential development: often a number of exactly similar houses are constructed close to each other. By comparing the values of such identical houses, we can measure the effect of proximity to water under almost ideal circumstances. Introduction of these fixed effects lowers the estimated impact of this amenity, thereby confirming the conjectured presence of an omitted variable bias.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractProximity to water is appreciated by households. Hedonic analyses that try to measure the value of this amenity are potentially biased by omitted variables as locations close to the water may be selected by households with higher incomes who construct more luxury houses. Since it is difficult to observe all relevant characteristics, the coefficient for proximity to water may be biased upwards. We circumvent this problem by exploiting a specific characteristic of the Dutch system of planned residential development: often a number of identical houses are constructed close to each other. By comparing the values of such identical houses, we can measure the effect of proximity to water under almost ideal circumstances. The results show a significant impact of this amenity, but of a smaller magnitude than was suggested by many earlier studies, thereby confirming the conjectured presence of omitted variable bias.
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