Are riskier cities more compact? An empirical study of the 11 largest census metropolitan areas in Canada, 2016

Xiaoxuan Sun, Diana Mok and Jinfei Wang

Papers in Regional Science, 2023, vol. 102, issue 1, 167-186

Abstract: Why are some cities more compact than others? We argue that riskier housing markets have a costlier real option; developers would require greater compensation to build now—thus, developers are being incentivized to delay, giving rise to more compact cities. We test this hypothesis cross‐sectionally for Canada's 11 largest census metropolitan areas. We interpret satellite imageries and estimate a hierarchical spatial autoregressive model to account for both the hierarchical and the spatial structure of our data. Our results show that, on average, a one‐percentage‐point increase in price risk reduces urban land coverage in the fringe by about 0.7 percentage point.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/pirs.12715

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:bla:presci:v:102:y:2023:i:1:p:167-186

Access Statistics for this article

Papers in Regional Science is currently edited by Jouke van Dijk

More articles in Papers in Regional Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().