The Determinants of the Transit Accessibility Premium

Gal Amedi ()
Additional contact information
Gal Amedi: Bank of Israel

No 2023.12, Bank of Israel Working Papers from Bank of Israel

Abstract: Accessibility is a key factor in the utility from living in different areas. In urban models, accessibility is theoretically expected to be internalized by the residential market, creating an 'accessibility premium' in areas with better accessibility. Previous case-study literature found significant and largely unexplained variation in the transit accessibility premium in different urban contexts. This paper proposes a new approach to uncovering the determinants of this variation in a unified framework, utilizing a theoretically grounded measure of accessibility, and both causal machine learning and standard econometric methods applied to highly granular nationwide data on rents and the transportation network. I find that high residential density, mixed-use zoning, and a demographic composition better reflecting typical transit users imply a larger transit accessibility premium. This premium is also higher in areas with a low level of services compared to a reasonable reference point, and positive only up to a threshold level of services. There is some evidence that proximity to rail systems implies a premium over and above the expected premium implied by a reduction in travel times alone. The estimated effect is usually modest.

JEL-codes: R12 R23 R31 R40 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2023-06
New Economics Papers: this item is included in nep-big, nep-geo, nep-tre, nep-upt and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://boiwebrepec.azurefd.net/RePEc/boi/wpaper/WP_2023.12.pdf First Version, 2023 (application/pdf)

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:boi:wpaper:2023.12

Access Statistics for this paper

More papers in Bank of Israel Working Papers from Bank of Israel Contact information at EDIRC.
Bibliographic data for series maintained by Yossi Yakhin ().