 Economic return of architecture awards: Testing homebuyers’ motives for paying moreWen-Chi Liao, Kecen Jing and Chaun Ying Rachel Lee Regional Science and Urban Economics, 2022, vol. 93, issue C Abstract: Architecture awards can increase the value of the winning properties, especially international accolades. This architecture award premium emerges only after the win and is orthogonal to the building's intrinsic aesthetic. The identification exploits a fact: Not all of the comparable, deserving projects succeed eventually. Propensity score matching isolates unwanted selection for treatment and preserves desired randomness, allowing difference-in-differences to compare projects having a similar chance of winning. We find a 5.4% architecture award premium in Singapore's housing market. Three different tests validate the common trend assumption. By triple-differences analyses, the award premium mainly belongs to large homes. It is unresponsive to construction quality and project visibility and decreases with winning projects' supply. A positive halo effect exists. These results lend much support to conspicuous consumption, among possible homebuyers' motives. Keywords: Architecture award premium; Conspicuous consumption; Propensity-score-matching difference-in-differences (PSM-DD); Property prices; Real estate branding; Triple-differences (DDD) (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:93:y:2022:i:c:s0166046221000831 DOI: 10.1016/j.regsciurbeco.2021.103723 Access Statistics for this article Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou More articles in Regional Science and Urban Economics from Elsevier |
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