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If Alonso Was Right: Accessibility as Determinant for Attractiveness of Urban Location

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  • Gabriel Ahlfeldt

    (Chair for Economic Policy, University of Hamburg)

Abstract

This paper assesses impact of accessibility corresponding to three distinct modes of urban transportation. The Alonso hypothesis of residents being fully compensated for rents increasing with proximity to CBD by employment opportunities is tested by application of a hedonic model using micro level data to explain standard land values in Berlin. Access to employment as well as location endowments with natural amenities and publicly and privately provided services are captured by potentiality variables. Similarly, impact of population potentiality is assessed for business properties. Accessibility generated by urban rail network is clearly found to have positive impacts on property prices and fully explains attractiveness of urban centrality for business. For residential properties, however, impact of proximity to CBD cannot be completely explained by employment opportunities revealing that the CBD provides additional services valued by residents.

Suggested Citation

  • Gabriel Ahlfeldt, 2007. "If Alonso Was Right: Accessibility as Determinant for Attractiveness of Urban Location," Working Papers 012, Chair for Economic Policy, University of Hamburg.
    • Handle: RePEc:hce:wpaper:012
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    File URL: http://www.hced.uni-hamburg.de/WorkingPapers/HCED_12.pdf
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    More about this item

    Keywords

    Market Access; Employment Access; Land Values; Polycentric City; Urban Transport; Alonso;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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