Spatial autocorrelation and neighborhood quality

Dubin, Robin A.

doi:10.1016/0166-0462(92)90038-3

Cited by 311 publications

(199 citation statements)

References 15 publications

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“…Early empirical studies using the monocentric model reported that the distance variable in house price models produced the expected negative coefficient, indicating that constant-quality house prices go down in value when houses are located further away from the city centre. However, Bender and Hwang (1985), Dubin (1992), Dubin and Sung (1987) and Olmo (1995), among many others, show that subsequent studies produced contradictory results. These studies point to the polycentric agglomeration of cities as a possible reason for this controversy.…”

Section: Introductionmentioning

confidence: 99%

Does it matter how far you live from the city centre? A study of apartment values in Vienna

Herath

Brunauer²,

Bienert³

et al. 2011

Proceedings of the 18th Annual European Real Estate Society Conference - Eindhoven, the Netherlands

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The explanations provided in the literature for community-level variations in constant-quality house prices vary from urban economics (e.g., distance from the Central Business District) to local public economics (e.g., property tax rate) to urban-amenities theory (e.g., crime rate). This paper examines the impact of distance from the city centre on values of residential apartment units in Vienna. Data on individual owner assessments of apartment value along with other hedonic determinants of housing value is obtained from a popular online database of apartment units available for sale. The three candidates for the location variable include the district in which the apartment units are located, a categorical variable classifying location into three groups -the centre, neighbouring districts and outskirtsin addition to estimates of distance from a predefined point in the city centre to the apartment units. The control variables of the analysis include number of rooms, living area, number of the floor, number of bathrooms and toilets, availability of balcony / terrace / elevator / basement and type of flooring in addition to the information if the unit is furnished. The first part of the article examines the possible influence of distance and other location variables on the price of a constant-quality apartment. The results demonstrate a negative relation between distance from the city centre and apartment price. The tests employed to empirically explore if there is spatial autocorrelation in the residual series suggest use of the spatial autoregressive error model (SEM) as appropriate. The estimation results of the spatial model are very similar to those of the base model, suggesting that the results produced by the base model are not an outcome of any misspecification of the model.

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Section: Introductionmentioning

confidence: 99%

Does it matter how far you live from the city centre? A study of apartment values in Vienna

Herath

Brunauer²,

Bienert³

et al. 2011

Proceedings of the 18th Annual European Real Estate Society Conference - Eindhoven, the Netherlands

View full text Add to dashboard Cite

show abstract

“…The former incorporates a spatial process into the error term to account for omitted variables (e.g. Dubin 1992;Dubin et al 1999), whereas the latter uses a spatially lagged dependent variable to account for spatial spillovers (e.g. Can and Megbolugbe 1997;Kim et al 2003).…”

Section: Literature Reviewmentioning

confidence: 99%

Trading Volume-Induced Spatial Autocorrelation in Real Estate Prices

Wong

Yiu

Chau

2012

J Real Estate Finan Econ

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Spatial dependence is often seen as a problem in econometrics rather than in economics. This study seeks to find an economic explanation for spatially correlated real estate prices. We posit spatial dependence as a process to discover price information from neighboring property transactions. Weaker spatial dependence is expected when price information in the immediate vicinity of a subject property is abundant. In the context of apartment buildings, in addition to the more commonly known horizontal dependence, there is also spatial dependence in the vertical dimension within the same building. Based on more than 18,000 transactions of highly homogeneous apartment units in Hong Kong, we found that the trading volume of a building depresses horizontal spatial dependence, but raises vertical spatial dependence. This not only confirmed the role of trading volume in the real estate price discovery process, but also questioned the validity of constant spatial autocorrelation assumption adopted in many studies.

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“…These local public goods together create varying levels of neighborhood quality, which in turn impacts the well-being of neighborhood residents and is capitalized into neighborhood home prices. Although neighborhoods are but one piece of the puzzle, when neighborhoods improve many improved outcomes are more easily attained--property values increase (Dubin, 1992), neighborhoods become more aesthetically pleasing (Leonard et al, 2010), socializing among residents is more likely (Sampson, 2003), neighborhood children often benefit from improved stability (Shaefer-McDaniel 2009), physical activity is more likely as the neighborhood is more "walkable" (Saelens et al 2003;Sallis & Glanz, 2006), and communities benefit from increased tax revenue.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Housing Market Conditions on Residential Property Upkeep

Leonard

2012

Housing Studies

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This paper assesses the impact of housing market conditions on the theoretically motivated and empirically observed negative relationship between loan to value ratios and home maintenance expenditures. If the relationship is causal, then a down housing market will result in significantly decreased upkeep in the housing stock. The large rise and fall in home prices during the 2001-2009 period allows a unique opportunity to analyze the response of homeowners to changing housing market conditions. Data from the American Housing Survey is analyzed to confirm previous work that a negative relationship exists between loan to value ratios and routine maintenance expenditures; however, this relationship does not move in the expected direction when examined along with temporal variations in market conditions. Panel analysis reveals a more complex story. Households most likely to be at risk for default do decrease maintenance expenditures when default risk increases, but other households actually increased maintenance expenditures when the housing market conditions became less favorable. 2 IntroductionMany neighborhood-level attributes are provided largely through unmonitored

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Spatial autocorrelation and neighborhood quality

Cited by 311 publications

References 15 publications

Does it matter how far you live from the city centre? A study of apartment values in Vienna

Does it matter how far you live from the city centre? A study of apartment values in Vienna

Trading Volume-Induced Spatial Autocorrelation in Real Estate Prices

The Impact of Housing Market Conditions on Residential Property Upkeep

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