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Expert Opinion versus Transaction Evidence: Using the Reilly Index to Measure Open Space Premiums in the Urban-Rural Fringe

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  • Cotteleer, Geerte
  • Stobbe, Tracy
  • van Kooten, G. Cornelis

Abstract

Due to economic and population growth farmland and to a lesser extend other undeveloped areas are under pressure in the urban-rural fringe in British Columbia, Canada. The objectives of this paper are to determine if residential property values near Victoria, BC include open-space premiums for farmland, parks or golf courses, and to determine if using assessed values instead of market prices of the property result in the same findings. We estimate a Seemingly Unrelated Regression (SUR) model with two hedonic pricing equations, one with actual market values as the dependent variable and one with assessed property values, and compare the resulting estimates of shadow prices for open space amenities. Furthermore, we take account of spatial autocorrelation and combine Method of Moment estimates of the spatial parameters in both equations.

Suggested Citation

  • Cotteleer, Geerte & Stobbe, Tracy & van Kooten, G. Cornelis, 2008. "Expert Opinion versus Transaction Evidence: Using the Reilly Index to Measure Open Space Premiums in the Urban-Rural Fringe," Working Papers 37085, University of Victoria, Resource Economics and Policy.
    • Handle: RePEc:ags:uvicwp:37085
    DOI: 10.22004/ag.econ.37085
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    Cited by:

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    More about this item

    Keywords

    Community/Rural/Urban Development; Land Economics/Use;

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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