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The Capitalization of Public Services and Amenities into Land Prices — Empirical Evidence from German Communities

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  • Alexander Ebertz

Abstract

Applying the hedonic approach to land prices, this paper investigates the capitalization of public services and pure amenities in a cross section of German communities. Possible spill-over effects from neighboring municipalities are explicitly included in the analysis and prove to be of considerable importance. Estimates of the impacts of local attributes on land prices are obtained taking into account the spatial structure among unobserved variables. The results confirm that differences in land prices can largely be attributed to local conditions and policies. This implies a significant degree of mobility as well as a sizeable valuation of local attributes by German households.
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  • Alexander Ebertz, 2013. "The Capitalization of Public Services and Amenities into Land Prices — Empirical Evidence from German Communities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(6), pages 2116-2128, November.
    • Handle: RePEc:bla:ijurrs:v:37:y:2013:i:6:p:2116-2128
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    File URL: http://hdl.handle.net/10.1111/j.1468-2427.2012.01160.x
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    2. Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
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    Cited by:

    1. Martijn J. Burger & Evert J. Meijers & Marloes M. Hoogerbrugge & Jaume Masip Tresserra, 2015. "Borrowed Size, Agglomeration Shadows and Cultural Amenities in North-West Europe," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1090-1109, June.
    2. Fredrik Carlsen & Stefan Leknes, 2019. "The paradox of the unhappy, growing city: reconciling evidence," Discussion Papers 907, Statistics Norway, Research Department.
    3. Uwe Neumann & Lisa Taruttis, 2022. "Sorting in an urban housing market—is there a response to demographic change?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 42(2), pages 111-139, August.
    4. Alexander Ebertz, 2008. "Die Wohnortwahl privater Haushalte und die Bewertung lokaler Standortfaktoren in den sächsischen Gemeinden," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(05), pages 14-22, October.
    5. Talat Munshi, 2020. "Accessibility, Infrastructure Provision and Residential Land Value: Modelling the Relation Using Geographic Weighted Regression in the City of Rajkot, India," Sustainability, MDPI, vol. 12(20), pages 1-16, October.

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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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