Assessing the spatial impact of policy interventions on real-estate values:An exemplar of the use of the hybrid hedonic/repeat-sales method

Abstract

This paper sets out to make a contribution to the extensive literature that seeks to develop methods that allow rigorous and robust analysis of the spatial and temporal impacts of public policy interventions on property (real-estate) values. It argues that the hybrid repeat-sales/hedonic method developed in real-estate studies over the last 30 years has considerable, but as yet under-developed, potential as a policy analysis tool. Using data from Glasgow, UK, the empirical analysis illustrates how the technique can be used to understand the spatial spillovers and the dynamic temporal effects of a historic £100 million state-led, area-based, urban-renewal programme, New Life for Urban Scotland. The paper concludes by arguing that, with the rise in the availability of rich geocoded, micro-datasets, this framework is sufficiently flexible to be used to evaluate the real-estate market impacts of a wide range of public policy interventions. Significantly, as the case study demonstrates, the framework overcomes some of the sustained criticisms of the more commonly used hedonic modelling approach. There is, however, still much to do to enhance the technical qualities of the models through further application.</p