No abstract

The absolute location of each real estate parcel in an urban housing market has a unique location-value signature. Accessibility indices, distant gradients and locational dummies cannot fully account for the influence of absolute location on the market price of housing because there are an indeterminable number of externalities (local and nonlocal) influencing a given property at a given location. Furthermore, the degree to which externalities affect real estate values is not only unique at each location but highly variable over space. Hence, absolute location must be viewed as interactive with other determinants of housing value. We present an interactive variables approach and test its ability to explain price variations in an urban residential housing market. The statistical evidence suggests that the value of location, as embodied in the selling price of housing units, may not be separable from other determinants of value. It is recommended that housing valuation models, therefore, be specified to allow site, structural and other independent attributes to interact with absolute location-{x, y} coordinates-when accounting for intraurban variation in the market price of residential housing. This approach is especially useful when estimating the value of housing for geographic areas where very little is known a priori about the neighborhoods or submarkets. Copyright 2003 by the American Real Estate and Urban Economics Association

No abstract

This paper presents a variation of Fotheringham's competing destinations model using categorized information on spatial flows in a central place system. A competing central place model is developed using spatially defined choice sets for origin — destination pairs by threshold distance and central place order. The competing central place generalization is empirically tested by undertaking a comparative analysis of 1980 domestic airline passenger traffic amongst selected cities in the continental United States. A host of modeling strategies are contrasted and the effects of mass, separation, and competitive forces noted in the presence or absence of hierarchical data. The production-constrained competing central place specification is shown to exhibit not only greater explanatory power than Fotheringham's competing destinations model, but also significant reductions in potential multicollinear relations between regressors. The model is later extended to incorporate an intervening opportunities filter. Competitive flow patterns between paired origins and destinations are then delimited by geographic range, compatibility, and the impeding effects of substitute and/or intervening flows within a hierarchical network.

In this paper the relationship between air service connectivity and a subset of professional employment as defined by administrative and auxiliary workers for the fifty-nine largest metropolitan areas in the USA for the period 1978–88 is examined. The importance of airline service connectivity as an industrial location factor for company facilities is highlighted. Restructuring of the air service network and the emergence of the postderegulation hub-and-spoke system are also discussed. It is argued that connectivity affects, and is simultaneously affected by, administrative and auxiliary employment levels. Empirical findings suggest that changes in connectivity have a greater influence on administrative and auxiliary employment levels than changes in administrative and auxiliary employment have on connectivity.