New Flight Regimes and Exposure to Aircraft Noise: Identifying Housing Price Effects Using a Ratio-of-Ratios Approach

Stefan Boes and Stephan N�esch ()
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Stephan N�esch: Institute of Strategy and Business Economics, University of Zurich
Authors registered in the RePEc Author Service: Stephan Nuesch

No 906, SOI - Working Papers from Socioeconomic Institute - University of Zurich

Abstract: In October 2003, a new flight regime was introduced at Zurich airport that significantly changed the levels of noise pollution in surrounding communities. We investigate the impact of the new flight policy on apartment prices using a hedonic price model and a non-linear difference-in-differences identification strategy. Our results suggest that rental prices increased by about 3 to 8 percent less in regions affected by the policy change, controlling for several apartment and location characteristics. The noise discount is still significant, although smaller, even after the inclusion of object-speciffc fixed effects. However, we do not find evidence of price changes in the sales market.

Keywords: quasi-experimental data; housing market; aircraft noise; hedonic approach; non-linear difference-in-differences; policy evaluation (search for similar items in EconPapers)
JEL-codes: C21 Q53 R21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2009-04
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (3)

Forthcoming in Journal of Urban Economics

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https://www.zora.uzh.ch/id/eprint/51918/1/wp0906.pdf first version, 2009 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:soz:wpaper:0906

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