Hedonic Pricing When Housing Is Endogenous: The Value of Access to the Trans‐israel Highway*

Beenstock, Michael; Feldman, Dan; Felsenstein, Daniel

doi:10.1111/jors.12207

Cited by 7 publications

(4 citation statements)

References 16 publications

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“…A more sophisticated approach may instead consider the actual travel distance, again expressed in metres or kilometres, from the building to the POI, which is the realistic distance covered by the existing road networks. Another option may be represented by the travel time it takes from the premise to the POI, as suggested in [57][58][59][60][61][62].…”

Section: Measuring the Observationsmentioning

confidence: 99%

“Location, Location, Location”: Fluctuations in Real Estate Market Values after COVID-19 and the War in Ukraine Based on Econometric and Spatial Analysis, Random Forest, and Multivariate Regression

Gabrielli

Ruggeri

Scarpa

2023

Land

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In this research, the authors aim to detect the marginal appreciation of construction and neighbourhood characteristics of property prices at three different time points: before the COVID-19 pandemic, two years after the first COVID-19 alert but before the War in Ukraine, and one year after the outbreak of the War. The marginal appreciations of the building’s features are analysed for a pilot case study in Northern Italy using a Random Forest feature importance analysis and a Multivariate Regression. Several techniques are integrated into this study, such as computer programming in Python language, multi-parametric value assessment techniques, feature selection procedures, and spatial analysis. The results may represent an interesting ongoing monitoring of how these anomalous events affect the buyer’s willingness to pay for specific characteristics of the buildings, with particular attention to the location features of the neighbourhood and accessibility.

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Section: Measuring the Observationsmentioning

confidence: 99%

“Location, Location, Location”: Fluctuations in Real Estate Market Values after COVID-19 and the War in Ukraine Based on Econometric and Spatial Analysis, Random Forest, and Multivariate Regression

Gabrielli

Ruggeri

Scarpa

2023

Land

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“…A study by Yiu and Wong on the impact of a tunnel improvement project on the prices of surrounding housing in the Western District of Hong Kong shows that, before the completion of the tunnel, a significant premium effect had already been realized ( 36 ). Recent literature has examined the impact of highway construction on surrounding housing prices using the DID approach ( 37 , 38 ). Since both studies examine highways passing through the country, they use travel time to the highway exit to measure accessibility, focusing only on the new highway.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Since both studies examine highways passing through the country, they use travel time to the highway exit to measure accessibility, focusing only on the new highway. A national highway that runs from south to north through the center of the country, or connects developed and underdeveloped regions from east to west, does not have the same level of connectivity and impact as an intra-city expressway ( 37 , 38 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of Urban Expressways on Housing Prices: A Case Study of Qiushi Highway, Hangzhou, China

Zhang

Shen

et al. 2022

Transportation Research Record

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This paper discusses the effects of the construction of urban expressway on accessibility and further investigates the relationship between changes in accessibility and house prices caused by expressway construction. Taking the Qiushi Highway Phase III project in China as an example, a hedonic price model and difference-in-difference method are used to analyze the impact. The main innovation of the study is how it considers the improvement of the overall traffic conditions brought about by the construction of the expressway. In addition, three distance impedance parameters—namely Euclidean distance, road network distance, and actual transit time—are used to estimate the value of traffic accessibility during the process. The main research conclusions are as follows: (1) The opening of the Qiushi Highway Phase III project can significantly improve the accessibility of the surrounding areas to the city center. Additionally, this improvement can be extended to further sites through the urban expressway network; (2) The results of the difference-in-difference method show that the premium effect of the city expressway on house prices will not be directly generated by the expressway’s geographical proximity to the project. In fact, the expressway will increase accessibility in some related areas and will also have a further positive impact on housing prices; (3) Among the three types of traffic impedance parameters, accessibility calculated on the basis of actual transit time has the strongest connection to house prices.

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“…These welfare costs are hard to measure by conventional hedonic approaches, see Moretti and Neidell (). Relatedly, Beenstock, Feldman, and Felsenstein () study how supply effects influence hedonic pricing estimates that occur when positive changes in the environment attract new residents to the study area.…”

Section: Introductionmentioning

confidence: 99%

A real options approach to amenity valuation: The role of uncertainty and risk aversion

Mense¹

2017

Journal of Regional Science

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Many empirical studies in the fields of urban and environmental economics rely on the hedonic pricing framework. This paper draws attention to two important elements that are not covered by this theory: uncertainty and relocation costs. It develops a theoretical model where agents face uncertainty, but may accumulate savings as a form of self‐insurance. It shows that uncertainty pushes up relocation costs due to the option value of waiting, while self‐insurance helps to reduce this lock‐in problem. Moreover, the model suggests that the implicit price of environmental quality increases with uncertainty even if agents are risk‐neutral.

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Hedonic Pricing When Housing Is Endogenous: The Value of Access to the Trans‐israel Highway*

Cited by 7 publications

References 16 publications

“Location, Location, Location”: Fluctuations in Real Estate Market Values after COVID-19 and the War in Ukraine Based on Econometric and Spatial Analysis, Random Forest, and Multivariate Regression

“Location, Location, Location”: Fluctuations in Real Estate Market Values after COVID-19 and the War in Ukraine Based on Econometric and Spatial Analysis, Random Forest, and Multivariate Regression

Effects of Urban Expressways on Housing Prices: A Case Study of Qiushi Highway, Hangzhou, China

A real options approach to amenity valuation: The role of uncertainty and risk aversion

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