HEDONIC ANALYSIS OVER TIME AND SPACE: THE CASE OF HOUSE PRICES AND TRAFFIC NOISE

One consequence of the expanding road network and its associated traffic is increased levels of traffic noise. While the hedonic literature has consistently found a negative relationship between real estate prices and noise levels, research in the United States has typically relied on crude measures of traffic noise. Here, we reduce the measurement error of traffic noise exposure through a detailed model of noise propagation over the landscape. We then estimate the hedonic relationship between noise and single family house prices using over 40,000 transactions throughout the St. Paul, Minnesota, urban area from 2005 to 2010. We implement spatially and temporally flexible local regression techniques and find significant nonstationarity in the hedonic function over time and space.     

THE IMPACT OF CRIME ON APARTMENT PRICES: EVIDENCE FROM STOCKHOLM,SWEDEN

This study uses data of about 9,000 apartment sales in Stockholm, Sweden, to assess the impact of crime on property prices. The study employs hedonic pricing modelling to estimate the impact of crime controlling for other factors (property and neighbourhood characteristics). Geographic Information System (GIS) is used to combine apartment sales by coordinates with offences, land use characteristics and demographic data of the population. The novelty of this research is threefold. First, it explores a set of land use attributes created by spatial techniques in GIS in combination with detailed geographical data in hedonic pricing modelling. Second, the effect of crime in neighbouring zones at one place can be measured by incorporating spatial lagged variables of offence rates into the model. Third, the study provides evidence of the impact of crime on housing prices in a capital city of a traditional welfare state, information otherwise lacking in the international literature. Our results indicate that apartment prices in a specific area are strongly affected by crime in its neighbouring zones, regardless of crime type. When offences were broken down by types, residential burglary, theft, vandalism, assault and robbery individually had a significant negative effect on property values. However, for residential burglary such an effect is not homogenous across space, and apartment prices in central areas are often less discounted by being exposed to crime than those in the city's outskirts.     

租购同权”政策对学区房溢价的影响研究——基于空间特征价格模型的广州实证

在公共服务对住房市场的影响研究领域，学校质量的资本化效应一直是重要话题。本文借鉴边界固定效应思路，使用广州市2016和2019年136所重点小学周边学区房与相邻非学区房的配对面板数据，利用空间特征价格模型定量测度了不同质量等级教育资源的资本化效应，使用双重差分模型检验了“租购同权”政策对重点小学学区房房价和租金溢价的影响。研究结果表明：①广州市教育质量已部分资本化于住房价格和租金之中，且教育资源越优质，资本化程度越高。②“租购同权”政策的实施，并未带来学区房房价和租金溢价的显著变化。③“租购同权”政策对不同质量等级的重点小学学区房房价影响存在异质性，政策实施后省级重点小学的学区房溢价上升，区级重点小学的学区房溢价下降。④“租购同权”政策对于不同区域重点小学学区房房价和租金溢价的影响无显著差异。本文的研究结论可以为制定教育资源供给与配置的均衡化和公平性政策提供参考。     

ACCOUNTING FOR LOCAL SPATIAL HETEROGENEITIES IN HOUSING MARKET STUDIES

We adopt a novel method to deal with omitted spatial heterogeneities in hedonic house price analysis. A Gaussian variant of the conditional autoregressive (CAR) model is used to study the impact of spatial effects. In a general linear modeling framework, we include zone‐specific random effects that are allowed to interact spatially with neighboring zones. The results demonstrate that this estimator accounts for missing spatial information, producing more reliable results on estimated spatially related coefficients. The CAR model is benchmarked against a fixed effects model. Socioeconomic neighborhood characteristics are found to have only modest impact on spatial variation in housing prices.     

HEDONIC PRICING WHEN HOUSING IS ENDOGENOUS: THE VALUE OF ACCESS TO THE TRANS‐ISRAEL HIGHWAY*

Standard hedonic house pricing assumes that house prices are independent of the intangible to be priced. A methodology is proposed in which the supply as well as the demand for housing depends on the intangible. The methodology is applied to value access to the Trans‐Israel Highway (TIH). Using spatial panel data (2002–2008) we show that TIH had two effects on the housing market. It increased house prices in locations with greater access to TIH, and it affected housing construction. Standard hedonic pricing would have underestimated the value of access because it ignores the effects of housing construction on the intangible to be priced. House prices began to increase three years before TIH was inaugurated, but housing construction did not anticipate the inauguration of TIH.     

RESEARCH IN PROGRESS IN SCANDINAVIA

The authors quantitatively analyze the effect of railroad construction on agricultural land values in the often overlooked, agriculturally oriented, trans-Mississippi West. This region is unique in American history in that, at the end of the nineteenth century, the railroad itself preceded widespread settlement. Using a hedonic model, they show that railroad transport increased agricultural land values in this region by more than 20 percent, which had a larger impact than recent studies have found for other regions. Moreover, the authors found that the addition of a railroad to a county significantly increased its growth in land values. This finding is contrary to that of existing studies. Finally, the authors show statistically that the railroad and land values were not endogenously determined, lending credibility to the causality of the results presented in their hedonic and growth models. These results indicate a valuable alternative approach to use in the historical analysis of transportation infrastructure and its impact on land prices.     

CHILDHOOD IN A NEOLIBERAL UTOPIA: PLANNING RHETORIC AND PARENTAL CONCEPTIONS IN CONTEMPORARY STOCKHOLM

This article addresses how neoliberalism as a utopian ideal of the urban affects the practices of planners and parents, drawing on Stockholm, Sweden, as an example and foregrounding how these adult conceptions of the city are manifested, both socially and physically, and shape children's geographies. Through an analysis of planning documents and interviews with planners and parents, this study shows how Stockholm's planning is clearly conditioned by neoliberal beliefs, but rather than being linked with political sympathies, neoliberalism is expressed as a contemporary urbanism. This specific urbanism is not compatible with children's independent mobility and easy access to nature and play spaces, but demands, as expressed by planners and parents, certain “sacrifices” in order to be achieved. The study shows that age is an organizing norm in terms of spatial justice in the city and that ideological beliefs about the urban development affect how this (in)justice is organized. The planning documents reflect utopian neoliberal ideas about a specific urban identity, and when private actors are given more influence over what is being built and which spaces are developed, there is a deliberate transition from welfare‐planning values and the belief that children and adults have equal rights to urban neighbourhoods. This is expressed as a necessary transformation to a more urban and globally competitive city but given the extent to which welfare values are taken for granted in Sweden it is unlikely that the effect this transition will have on social and spatial justice in the city is recognized.     

ECONOMETRIC ANALYSIS OF HOUSING TRAIT PRICES IN A THIRD WORLD CITY*

ABSTRACT. A first step in the process of economic analysis of housing markets in Third World cities is the econometric analysis of housing trait prices. The information on market price of housing is basic to the derivation/estimation of other market parameters such as housing demand and supply elasticities. In addition, housing trait prices constitute invaluable inputs into the analysis of effects of government housing programs. This paper presents estimates of housing trait prices in a Third World city housing market, the city of Jos in Nigeria. Nonlinear stochastic specification of a policy constrained hedonic price function is presented as an unbiased estimator of housing trait prices. The Box-Cox statistical procedure was employed in the paper to obtain hedonic regression coefficients which are the parameters needed to compute the average prices evaluated both at the mean of each trait and at their margins. The potential uses of housing trait prices for policy analysis are discussed briefly.     

Fostering and planning urban regeneration: the governance of cultural districts in Copenhagen

Policy-makers and urban planners struggle to find the right formula to implement urban regeneration processes based on cultural assets, often focusing on the desired outcomes, but rarely questioning how the policy process can shape them. This paper examines different governance models for the implementation and organization of cultural districts, and evaluates how they can affect their actual realization by investigating three cases in Copenhagen, Denmark. The deindustrialization of Copenhagen left many of the city’s harbour areas disused and in turn provided the opportunity to develop three new cultural districts in the city centre. The paper contributes to the literature on cultural districts by matching specificities and contingencies attached to a particular urban area with the governance model adopted for its development. The paper claims that temporal experimentation has to be included in cultural planning and a mix of bottom-up and top-down approaches is more desirable than both a totally unregulated initiative and a real estate-driven development and a totally unregulated initiative, as it ensures that initiatives remain financially viable and that the creative workers and companies retain a certain control of the area development, and in turn counteracts gentrification.     

Revitalisation of the Main Street of a Distinguished Old Neighbourhood in Istanbul

This study investigates the revitalisation of the main street of Beyoglu, which was the westernised part of Istanbul's CBD in the nineteenth century. Beyoglu started to develop in the sixteenth century with the introduction of embassy buildings of European countries. Its development reached a climax during the nineteenth century as a result of increased European trade and cultural influence, remaining the most distinguished quarter of Istanbul until the 1960s. Thereafter, it suffered from decay, disinvestment and abandonment as a result of later suburbanisation and the multi-centre development of Istanbul. Revitalisation of the quarter started with the pedestrianisation of the main street. This study investigates the functional transformation and changes in land prices along the main street and surrounding neighbourhoods after the pedestrianisation. The factors which effect land prices are investigated by the use of regression analysis. According to the results, access to mass transit is the most important factor. Besides its convenient central-city location, with easy access to the city's main transportation arteries, no doubt also its distinguished architectural character contributed to its revitalisation. Although the revitalisation of the main street as a cooperative movement of public and private sectors, effectively, it was a market-lead restructuring afterwards. At the same time, international companies opening up stores reflecting the globalisation movement increased the attractiveness of the main street. The results of the study can be used by urban planners, policy-makers and investors for the revitalisation of other historical neighbourhoods in Istanbul and other cities. For further research, hierarchical analysis of spatial impacts of revitalisation areas is suggested.     

Planning the compact city: The randstad Holland experience

All over the world compact urban development is a topic of debate. However, practitioners and academics in many countries seem slow to synthesize suitable policies. Therefore, in this paper 30 years of experience with compact urban development is projected against the backdrop of the international discussion on this issue. The Dutch experience confirms the legitimacy of many arguments and findings presented in the international literature. Yet, Dutch practices put the policy's success into perspective. It appears to be less successful when related to mobility effects and the spatial consequences of urban growth. The relative success of compact urban development was mainly owing to the specific conditions under which the policy was implemented. As these conditions are now changing, it remains to be seen whether this policy will be seriously jeopardized. In the event that planners elsewhere pursue compact urban development within their territory, cognizance of the Dutch experience may help them to shape their policies to achieve their full potential.     

VALUING AMENITIES AND DISAMENITIES OF URBAN SCALE: CAN BIGGER BE BETTER?*

ABSTRACT. Considerable effort has been devoted within the recent literature to the valuation of urban amenities and disamenities, as well as to econometric procedures required for the estimation of their implicit market “prices.” This study questions the equilibrium conditions invoked within this literature to derive estimates of marginal willingness to pay, conditions premised upon “perfect” labor mobility among cities. It is shown that such assumptions need not be invoked if one considers the amenity price-mobility relationship directly. This is accomplished by appending a binary migration model to a first-stage wage equation, a procrdure that provides estimates of willingness to pay that can diverge from market-determined implicit prices. Comparison of such values yields important information on the adequacy of market compensation for disamenities (amenities) throughout metropolitan areas.     

SPATIAL HEDONIC MODELS OF AIRPORT NOISE,PROXIMITY, AND HOUSING PRICES*

ABSTRACT Despite the refrain that housing prices are determined by “location, location, and location,” few studies of airport noise and housing prices have incorporated spatial econometric techniques. We compare various spatial econometric models and estimation methods in a hedonic price framework to examine the impact of noise on 2003 housing prices near the Atlanta airport. Spatial effects are best captured by a model including both spatial autocorrelation and autoregressive parameters estimated by a generalized moments approach. In our preferred model, houses located in an area in which noise disrupts normal activities (defined by a day–night sound level of 70–75 decibels) sell for 20.8 percent less than houses located where noise does not disrupt normal activities (defined by a day–night sound level below 65 decibels). The inclusion of spatial effects magnifies the negative price impacts of airport noise. Finally, after controlling for noise, houses farther from the airport sell for less; the price elasticity with respect to distance is −0.15, implying that airport proximity is an amenity.     

清末天津物價與外僑在華日常生活——德國駐津領事館檔案資料札記之一

聯邦德國檔案館藏清末德國駐天津使館若干檔案,保留了那個時期天津的若干物價與商業資料,使我們得以窺知當時神秘的外國人在華的消費習慣、生活水準,以及匯率與物價變動對其日常生活的影響,彌補了一般中文史料之不足。     

A HEDONIC MODEL OF INTERREGIONAL WAGES,RENTS, AND AMENITY VALUES*

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location-specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single-market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.     

教育资源配置对住房价格影响的时空差异研究——以35个大中城市为例

本文以2002-2017年35个大中城市为数据基础,借鉴Rosen-Roback城市空间均衡模型,测度大中城市教育资源对住房价格的影响差异性。研究发现：①控制其他变量后,教育事业费支出水平每提高1%,住房价格水平平均上涨0.156个百分点;②空间维度上,沿海城市的教育资源对住房价格的影响,显著小于内陆城市;而政治级别的差异在大中城市间的影响较小;③时间维度来看,教育资源对住房价格的影响在各时期都是显著存在的,表明教育资源的影响具有长期累积特征;从影响程度绝对值来看,影响系数具有随时间递减的特征。     

Lynch's The Image of the City after 50 Years: City Marketing Lessons from an Urban Planning Classic

Exactly half a century ago, the MIT-scholar Kevin Lynch published The Image of the City (1960). The book was agenda-setting, thanks to its original approach to the way people perceive the urban environment. Over the years, The Image of the City has become a classic among urban planners. Fifty years after its publication the study is still highly topical and relevant. In this contribution, we argue that not only urban planners, but also city marketers can learn from Lynch's most cited book. The framework Lynch devised to assess urban areas is of great use for cities that look for a distinctive image to market themselves. After a short review of the book, we explore the opportunities of the Lynchian framework for city marketing. Next we briefly discuss case examples of three European cities: the Finnish capital of Helsinki, Bielefeld in the German region of Westphalia and the old industrial city of Enschede in the Netherlands. The paper concludes by suggesting city marketers to do a “picture postcard test” to examine the link between the city's built environment and the city's marketing.     

Perspectives of civil society on governance of urban shrinkage: the cases of Heerlen (Netherlands) and Blaenau Gwent (Wales) compared

In light of the ongoing urban shrinkage debate, planners stressed the need for new planning concepts and strategies. In this respect, the relevance of involving civil society in governance of urban shrinkage has been emphasized. So far, however these issues have received limited attention. This paper aims to contribute to the debate by investigating (1) how actors in civil society experience urban shrinkage and (2) their perspectives on the governance of urban shrinkage. We study this in two shrinking medium-sized cities: Heerlen (the Netherlands) and Blaenau Gwent (Wales). To answer these research questions, we make use of the concept of social capital. We follow a comparative case study design, primarily basing the analysis on data from 52 in-depth interviews. In the case studies, specific patterns of social capital can be observed: strong place attachment, strong informal participation and weak trust of civil society in local governments. However, the experience of urban shrinkage and the reaction to shrinkage differs. We conclude that understanding shrinkage and addressing it are predominately context related. Explanations based on historical developments and welfare state provisions are offered. The paper ends with reflections on the implications of these findings for governance of urban shrinkage.     

Bayesian Spatial Filtering for Hedonic Models: An Application for the Real Estate Market

This article presents a Bayesian method based on spatial filtering to estimate hedonic models for dwelling prices with geographically varying coefficients. A Bayesian Adaptive Sampling algorithm for variable selection is used, which makes it possible to select the most appropriate filters for each hedonic coefficient. This approach explores the model space more systematically and takes into account the uncertainty associated with model estimation and selection processes. The methodology is illustrated with an application for the real estate market in the Spanish city of Zaragoza and with simulated data. In addition, an exhaustive comparison study with a set of alternatives strategies used in the literature is carried out. Our results show that the proposed Bayesian procedures are competitive in terms of prediction; more accurate results are obtained in the estimation of the regression coefficients of the model, and the multicollinearity problems associated with the estimation of the regression coefficients are solved.     

The economic effects of big events: Evidence from the great jubilee 2000 in Rome

This paper assesses the short- and long-term economic impact of the 2000 Great Jubilee, the foremost Catholic event occurring every 25 years, on the city of Rome's economy. By applying the synthetic control approach, we find that the value added per capita increases slightly in the short term, whereas in the long term it is not significantly different from what it would have been if Rome had not hosted the Jubilee. However, we do find a significant effect on the employment rate. Consistent with these findings, we document a shift of the local economy toward less productive sectors, such as construction and services requiring lower skills, and an overall productivity loss with respect to the counterfactual scenario. The investment in infrastructure, facilities, and urban refurbishment did not significantly increase housing prices in the long term, with the exception of peripheral residential areas, which experienced an appreciation.