From Latin Quarter to Montmartre: Investigating Parisian Real Estate Prices

Mathide Poulhes

Annals of Economics and Statistics, 2018, issue 130, 39-68

Abstract: This paper estimates buyers' preferences for dwelling attributes and neighbourhood characteristics. The collected data allows for the simultaneous consideration of a wide range of intrinsic characteristics, such as surface, floor, etc., and neighbourhood characteristics, including noise, crime, school quality, distance to jobs, etc. The marginal willingness to pay is identified from transaction data under the assumptions of the hedonic model described by Rosen (1974). We use very local fixed effects combined when possible with administrative boundaries as geographical discontinuities to isolate the effect of each amenity. Estimation is achieved by using flexible semi-parametric methods. Characteristics explain more than 90% of the variance of dwelling prices, showing a significant positive marginal willingness to pay for job accessibility and school quality, and a negative marginal willingness to pay for a higher crime rate in the area. By contrast, noise level or public transport accessibility have less influence on housing prices. These results are robust to the inclusion of census tract fixed-effects, which also drastically reduces the spatial correlation of the residual prices.

Keywords: Housing Market; Hedonic Prices; Neighborhood Characteristics. (search for similar items in EconPapers)
JEL-codes: H41 R21 R23 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.jstor.org/stable/10.15609/annaeconstat2009.130.0039 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2018:i:130:p:39-68

DOI: 10.15609/annaeconstat2009.130.0039

Access Statistics for this article

Annals of Economics and Statistics is currently edited by Laurent Linnemer

More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Laurent Linnemer ().