Highlights The paper aims at developing a spatial difference-in-differences (SDID) estimator. The SDID decompose the marginal effect to include spatial spillover. The SDID adequately account for the temporal constraints of spatial relations. An empirical example support the significant effect of spatial dependence. The general SDID estimator can be applied to many other empirical case.
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.
A spatial Difference-in-Differences estimator to evaluate the effect of change in public mass transit systems on house prices
Transportation Research Part B: Methodological ; 64 ; 24-40
2014-02-27
17 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
A volatile relationship: The effect of changing gasoline prices on public support for mass transit
Online Contents | 2014
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