Externalities and House Prices: A Stated Preferences Approach
Objective: In the article, we address the nexus between neighbourhood externalities and house prices using stated preference data. The impact of neighbourhood amenities generating positive externalities and disamenities generating negative externalities on property prices has been studied since the...
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| Format: | Article |
| Language: | English |
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Cracow University of Economics
2018-12-01
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| Series: | Entrepreneurial Business and Economics Review |
| Subjects: | |
| Online Access: | https://eber.uek.krakow.pl/index.php/eber/article/view/477 |
| _version_ | 1818920636459778048 |
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| author | Michał Głuszak |
| author_facet | Michał Głuszak |
| author_sort | Michał Głuszak |
| collection | DOAJ |
| description | Objective: In the article, we address the nexus between neighbourhood externalities and house prices using stated preference data. The impact of neighbourhood amenities generating positive externalities and disamenities generating negative externalities on property prices has been studied since the 1970s. Most of the studies to date applied the hedonic methodology and assumed that the effect is homogeneous. The article aims to address the potential heterogeneity of housebuyers’ preferences.
Research Design & Methods: The article uses logistic regression models on stated preference data regarding the sensitivity to three spatial amenities (public transit, urban green area, and retail and services) and three spatial disamenities (railway line, noisy road, petrol station). The dataset comes from six editions of the survey on housing demand and preferences in Krakow conducted annually from 2012 to 2017.
Findings: Empirical results show the relation between household lifecycle and household wealth and willingness-to-pay for spatial amenities and willingness-to-accept spatial disamenities. We did not observe the difference in preferences dependent on the purchase motive.
Implications & Recommendations: The results can be interesting for planners and policymakers, but also in the business environment in case of residential development.
Contribution & Value Added: The article fills the gap in the economic literature on factors affecting housebuyers’ sensitivity to certain positive and negative externalities that manifest in stated willingness-to-pay and willingness-to-accept. |
| first_indexed | 2024-12-20T01:24:54Z |
| format | Article |
| id | doaj.art-bf0096b9f0b340f7a074e5c1dbfc50e1 |
| institution | Directory Open Access Journal |
| issn | 2353-883X 2353-8821 |
| language | English |
| last_indexed | 2024-12-20T01:24:54Z |
| publishDate | 2018-12-01 |
| publisher | Cracow University of Economics |
| record_format | Article |
| series | Entrepreneurial Business and Economics Review |
| spelling | doaj.art-bf0096b9f0b340f7a074e5c1dbfc50e12022-12-21T19:58:17ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-883X2353-88212018-12-016418119610.15678/EBER.2018.060410477Externalities and House Prices: A Stated Preferences ApproachMichał Głuszak0Cracow University of EconomicsObjective: In the article, we address the nexus between neighbourhood externalities and house prices using stated preference data. The impact of neighbourhood amenities generating positive externalities and disamenities generating negative externalities on property prices has been studied since the 1970s. Most of the studies to date applied the hedonic methodology and assumed that the effect is homogeneous. The article aims to address the potential heterogeneity of housebuyers’ preferences. Research Design & Methods: The article uses logistic regression models on stated preference data regarding the sensitivity to three spatial amenities (public transit, urban green area, and retail and services) and three spatial disamenities (railway line, noisy road, petrol station). The dataset comes from six editions of the survey on housing demand and preferences in Krakow conducted annually from 2012 to 2017. Findings: Empirical results show the relation between household lifecycle and household wealth and willingness-to-pay for spatial amenities and willingness-to-accept spatial disamenities. We did not observe the difference in preferences dependent on the purchase motive. Implications & Recommendations: The results can be interesting for planners and policymakers, but also in the business environment in case of residential development. Contribution & Value Added: The article fills the gap in the economic literature on factors affecting housebuyers’ sensitivity to certain positive and negative externalities that manifest in stated willingness-to-pay and willingness-to-accept.https://eber.uek.krakow.pl/index.php/eber/article/view/477externalitieshouse pricehedonicstated preferences |
| spellingShingle | Michał Głuszak Externalities and House Prices: A Stated Preferences Approach Entrepreneurial Business and Economics Review externalities house price hedonic stated preferences |
| title | Externalities and House Prices: A Stated Preferences Approach |
| title_full | Externalities and House Prices: A Stated Preferences Approach |
| title_fullStr | Externalities and House Prices: A Stated Preferences Approach |
| title_full_unstemmed | Externalities and House Prices: A Stated Preferences Approach |
| title_short | Externalities and House Prices: A Stated Preferences Approach |
| title_sort | externalities and house prices a stated preferences approach |
| topic | externalities house price hedonic stated preferences |
| url | https://eber.uek.krakow.pl/index.php/eber/article/view/477 |
| work_keys_str_mv | AT michałgłuszak externalitiesandhousepricesastatedpreferencesapproach |