The train has left the station: Do markets value intra-city access to inter-city rail connections?

This paper analyzes the impact of access to inter-city rail connections on property prices using hedonic, difference-in-difference and time-difference estimation strategies. We investigate the reorganization of the rail system in post-unification Berlin, Germany, which provides much variation in accessibility. Evidence does not support the existence of localized effects. Neither in proximity to stations nor at city-level are there significant price adjustments. No significant price effect is revealed on distance to stations, even when allowing for a complementary relationship. An increase in the attractiveness of central locations coinciding with the final announcement of the train schedule is not attributable to the intervention.Property prices; transport innovation; inter-city connection; railroad; Berlin

If Alonso was Right: Residual Land Price, Accessibility and Urban Attraction

This study investigates whether accessibility shapes the attractiveness of residential land as predicted by theory. A spatial hedonic analysis is conducted for the metropolitan area of Berlin, Germany, using a large set of georeferenced property transactions and micro-level data. We find that the nuclei of residential land price and employment density gradients are separated by approx. 10 km, which essentially contradicts theoretical implications. Also, environmental externalities arising from the residential composition or the building structure and density in the neighborhood are more important determinants than access to the city center, which, if at all, impacts negatively on residential land prices. Moreover, a new gravity-based accessibility indicator is employed that incorporates the effective distribution of employment as well as the rapid transit network architecture in order to disentangle the effects of proximity to employment opportunities from a more general urban attraction effect. After controlling for accessibility, we find a negative effect of urban attraction, respectively an effect of urban repulsion, indicating a relatively higher attractiveness of peripheral locations. This effect is partially counterbalanced by the benefits arising from access to employment opportunities that are, although relatively dispersed, more concentrated within downtown areas. In the tension between both forces, the land price gradient tends to be, if at all significant, positive. After all, we conclude that if transport costs are very low, commuting costs lose their role as the most striking determinant of land price. These results are robust to spatial dependency.Accessibility, gradient inversion, land price, urban attraction, Berlin

Valuing iconic design: Frank Lloyd Wright architecture in Oak Park, Illinois

This study investigates the willingness of homebuyers to pay for co-location with iconic architecture. Oak Park, Illinois was chosen as the study area given its unique claim of having 24 residential structures designed by world-famous American architect Frank Lloyd Wright, in addition to dozens of other designated landmarks and three preservation districts. This study adds to the limited body of existing literature on the external price effects of architectural design and is unique in its focus on residential architecture. We find a premium of about 8.5% within 50-100m of the nearest Wright building and about 5% within 50-250m. These results indicate that an external premium to iconic architecture does exist, although it may partially be attributable to the prominence of the architec

From Periphery to Core: Economic Adjustments to High Speed Rail

This paper presents evidence that high speed rail systems, by bringing economic agents closer together, sustainably promote economic activity within regions that enjoy an increase in accessibility. Our results on the one hand confirm expectations that have led to huge public investments into high speed rail all over the world. On the other hand, they confirm theoretical predictions arising from a consolidate body of (New) Economic Geography literature taking a positive, man-made and reproducible shock as a case in point. We argue that the economic geography framework can help to derive ex-ante predictions on the economic impact of transport projects. The subject case is the German high speed rail track connecting Cologne and Frankfurt, which, as we argue, provides exogenous variation in access to regions due to the construction of intermediate stations in the towns of Limburg and Montabaur.NEG; high speed rail; transport policy; market access; acces-sibility

Form or Function? The Impact of New Football Stadia on Property Prices in London

This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade – the This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade – the New Wembley and the Emirates stadium in London, UK. Evidence suggests positive stadium externalities, which are large compared to construction costs. Notable anticipation effects are found immediately following the announcement of the final stadium plans. Our results emphasize the role stadium architecture plays in promoting positive spillovers to the neighbourhood. We therefore recommend public funding of large-scale sports facilities to be made conditional on a comprehensive urban design strategy that maximizes the external benefits.Property prices Stadium impact

How polycentric is a monocentric city? The role of agglomeration economies

Can the demise of the monocentric economy across cities during the 20th century be explained by decreasing transport costs to the city center or are other fundamental forces at work? Taking a hybrid perspective of classical bid-rent theory and a world where clustering of economic activity is driven by (knowledge) spillovers, Berlin, Germany, from 1890 to 1936 serves as a case in point. We assess the extent to which firms in an environment of decreasing transport costs and industrial transformation face a trade-off between distance to the CBD and land rents and how agglomeration economies come into play in shaping their location decisions. Our results suggest that an observable flattening of the traditional distance to the CBD gradient may mask the emergence of significant agglomeration economies, especially within predominantly service-based inner city districts.Transport Innovations; Land Values; Location Productivity; Agglomeration Economies; Economic History; Berlin

How Polycentric is a Monocentric City? The Role of Agglomeration Economies

Can the demise of the monocentric economy across cities during the 20th century be explained by decreasing transport costs to the city center or are other fundamental forces at work? Taking a hybrid perspec¬tive of classical bid-rent theory and a world where clustering of economic activity is driven by (knowledge) spillovers, Berlin, Germany, from 1890 to 1936 serves as a case in point. We assess the extent to which firms in an environment of decreasing transport costs and industrial transformation face a trade-off between distance to the CBD and land rents and how agglomeration economies come into play in shaping their location deci¬sions. Our results suggest that an observable flattening of the traditional distance to the CBD gradient may mask the emergence of significant agglomeration economies, especially within predominantly service-based inner city districts.Transport Innovations, Land Values, Location Productivity, Agglomeration Economies, Economic History, Berlin.

GEOGRAPHY OF A SPORTS METROPOLIS

This study analyzes the sports infrastructure of Hamburg, Germany, from the residents’ perspective. Empirical evidence is provided using a micro-level dataset of 1,319 sports facilities, which is merged with highly disaggregated data on population, socio-demographic characteristics and land values. Based on implicit travel costs, locations’ endowment of sports infrastructure is captured by potentiality variables, while accounting for natural and unnatural barriers. Given potential demand, central areas are found to be relatively underprovided with a sports infrastructure compared to peripheral areas where opportunity cost in the form of price of land is lower. The determinants of spatial distribution vary systematically across types of sports facilities. Publicly provided open sports fields and sports halls tend to be concentrated in areas of relatively low income which is in line with their social infrastructure character, emphasized by local authorities. In contrast, there is a clear tendency for market allocated tennis facilities to follow purchasing power. Areas with higher proportions of foreigners are subject to relatively lower provision of a sports infrastructure, which contradicts the stated ambitions of planning authorities.PUBLIC INFRASTRUCTURE, SPORTS FACILITIES, SPORTS GEOGRAPHY

Every generation votes in their own interest. But in an ageing world, that’s a problem

A majority of pensioners voted for Brexit, but less than a fifth of 18-24 year-old voters did. How does age influence voting decisions in referenda? As direct democracy becomes more and more popular, Gabriel Ahlfeldt and his co-authors analysed voting patterns among different generations and found people tend to vote in their own interests – which, when the costs are short-term and the benefits accrue later, puts the young at a disadvantage. They suggest ways of addressing the generation gap before voters go to the polls

Putting a price on starchitecture

Posted by Dr Gabriel Ahlfeldt, LSE and SERC We know that good architecture plays a big role in the appeal of a neighbourhood, even if we don’t always agree on what good-looking buildings look like. What’s even harder to test is how iconic buildings affect the value of other nearby buildings – architectural spillovers, if you like