EconPapers    
Economics at your fingertips  
 

A spatial Difference-in-Differences estimator to evaluate the effect of change in public mass transit systems on house prices

Jean Dubé, Diègo Legros (), Marius Thériault and François Des Rosiers

Transportation Research Part B: Methodological, 2014, vol. 64, issue C, 24-40

Abstract: Evaluating the impact of public mass transit systems on real-estate values is an important application of the hedonic price model (HPM). Recently, a mathematical transformation of this approach has been proposed to account for the potential omission of latent spatial variables that may overestimate the impact of accessibility to mass transit systems on values. The development of a Difference-in-Differences (DID) estimator, based on the repeat-sales approach, is a move in the right direction. However, such an estimator neglects the possibility that specification of the price equation may follow a spatial autoregressive process with respect to the dependent variable. The objective of this paper is to propose a spatial Difference-in-Differences (SDID) estimator accounting for possible spatial spillover effects. Particular emphasis is placed on the development of a suitable weights matrix accounting for spatial links between observations. Finally, an empirical application of the SDID estimator based on the development of a new commuter rail transit system for the suburban agglomeration of Montréal (Canada) is presented and compared to the usual DID estimator.

Keywords: Mass transit; Policy evaluation; Hedonic pricing model; Difference-in-Differences estimator; Spatial econometrics (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0191261514000332
Full text for ScienceDirect subscribers only

Related works:
Working Paper: A Spatial Difference-in-Differences Estimator to Evaluate the Effect of Change in Public Mass Transit Systems on House Prices (2014)
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:eee:transb:v:64:y:2014:i:c:p:24-40

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2014.02.007

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-10-25
Handle: RePEc:eee:transb:v:64:y:2014:i:c:p:24-40