How much do users value a network expansion? Evidence from the public transit system in Singapore
Eric Fesselmeyer () and
Haoming Liu ()
Regional Science and Urban Economics, 2018, vol. 71, issue C, 46-61
We estimate the network effects of a public transit system by examining the impact of its expansion on housing prices. Our results show that a major expansion of Singapore's Mass Rapid Transit (MRT) system increased the price of apartments within 0.5 km of a pre-expansion station by 1.8% relative to apartments that were further away from a station. Evaluated at the mean housing price, the expansion increased the value of pre-connected apartments by at least S$455 million in aggregate, which is equivalent to 9% of the estimated S$5 billion cost of the expansion.
Keywords: Public transportation; Housing; Network effects (search for similar items in EconPapers)
JEL-codes: H4 R21 R42 H23 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:71:y:2018:i:c:p:46-61
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