Scenery for Rent: A Preliminary Investigation into The Unanticipated Loss of Amenities on the Urban Fringe
نویسنده
چکیده
This paper studies price shocks on urban fringe properties surrounding Tucson, Arizona to test if construction on neighboring parcels imposes a negative externality and if investors are able to anticipate the timing of sprawl. Three preliminary estimations are performed, building from classical tests to a rate of return-based hedonic regression. Construction on parcels adjacent to isolated exurban properties is found to cause a negative shock in each of the regressions. The preliminary results imply that neighboring construction causes negative externalities and is occurring 1.8 years sooner than anticipated by the real estate market. Therefore exurban development is occurring even faster than expected by investors and appears to be a process characterized by imperfect information and market failures.
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تاریخ انتشار 2004