The Puzzling Heterogeneity of Amenity Capitalization Effects on Land Markets

Wenjie Wu, Guanpeng Dong, Wenzhong Zhang

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

Government-funded urban amenities provide significant values to land markets. This paper uses spatial econometric techniques to recover the puzzling heterogeneity in capitalized values of local amenities such as higher education facilities, transport and environmental amenities. On top of its policy implications, this paper differentiates between non-spatial models and spatial models to allow spatially varying marginal-price estimates and reflect the subtle ways that land markets capitalize local amenities. Our results provide heterogeneous estimates of capitalized amenity values that would affect land development, illustrating the linkage between government-funded amenities and the intensity of land development.
Original languageEnglish
Number of pages19
JournalPapers in Regional Science
DOIs
Publication statusE-pub ahead of print - 10 Nov 2015

Keywords

  • Land market
  • local public goods
  • spatial econometric methods
  • China

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