Testing for the Impact of Local Labour Market Characteristics on House Prices

The starting point of this paper is a hedonic regression model where house prices are explained as a result of urban attraction and the accessibility to job opportunities in the region. The basic hypothesis is that house prices reflect that households in addition value accessibility to job opportunities in the neighborhood. We propose several measures of local labor market characteristics, and test for the impact on house prices. The alternative measures do not add considerably to the explanatory power. Still, some characteristics contribute significantly, and affect the size and interpretation of the relationship between local labor market conditions and house prices.

Testing for the impact of local spatial structure characteristics on house prices

The starting point of this paper is a hedonic regression model where house prices are explained as a result of urban attraction and the accessibility to job opportunities in the region. We introduce the hypothesis that households in addition value accessibility to job opportunities in the neighborhood, and study if and how this is reflected in house prices. We propose several measures of local labor market characteristics, and test for the impact on house prices. The alternative measures do not add considerably to the explanatory power. Still, some characteristics contribute significantly, and affect the strength and interpretation of the relationship between local labor market conditions and house prices.Housing Demand; Housing Supply and Markets

Evaluating Housing Price Predictability of Alternative Hedonic Model Formulations

We first use alternative hedonic model formulations to compare predicted and observed prices of property transactions in alternative locations. The estimation of model parameters is based on data from Western Norway, and the model formulations differ with respect to the representation of spatial structure. We discuss how measures like the distance to the cbd and a gravity based accessibility measure of labour market accessibility, contribute to predict spatial variations in housing prices. We also discuss how appropriate alternative models are to predict possible consequences on housing prices of changes in the spatial distribution of employment, and in the road transportation network. Finally, we recommend that a relative measure of labour market accessibility is introduced, to capture effects of spatial competition in the housing market.

An agent-based computational approach to explaining persistent spatial unemployment disparities

This paper explores possible reasons for persistent spatial unemployment disparities using agent-based computational methods. The method relies on observing the actions of thousands of individuals within an artificial society. The paper models the effect of unemployment insurance, wage disparities, region specific amenities and innate residential preferences on regional labour market interactions, accounting for both migration and commuting. An empirical example of Rogaland county in south-west Norway is given, where unemployment disparities have proved remarkably persistent for decades. The model provides non-trivial insight into the nature of spatial unemployment disparities as well as making a valuable contribution to the policy debate.Unemployment insurance; wage disparities; region specific amenities; innate residential preferences; regional labour market interactions

Housing Price Gradients in a Region with One Dominating Center

This paper primarily focuses on predicting housing price gradients in a Norwegian region with one dominating center. Spatial separation is represented by a function of the traveling distance from the city center in a traditional hedonic regression equation. Several functions are tested, and some alternatives provide a satisfying goodness-of-fit, consistent coefficient estimates, and intuitively reasonable predictions of housing price gradients. Still, not all commonly used functions are recommended. The findings also indicate that the strength of spatial autocorrelation is reduced when the hedonic function is properly specified.

Modelling intra-regional geographic mobility in a rural setting

Large-scale models are often used in the urban planning context to model the effects of, for instance, a change in land-use policies or transportation infrastructure. This class of models accounts for factors such as the spatial distribution of jobs and workers, commuting flows, housing markets, modal choice and so on. One criticism of such models is their complexity, computational demands and data requirements. In this paper, we develop a model which shares certain features with large-scale models, but which is appropriate for studying development at the intra-regional level in a rural setting. The rural setting means that not all of the traditional features of a large-scale model are relevant, and these can therefore be omitted. This allows us to create a simple model which still captures the most relevant effects of large-scale models.

Housing price gradients in a geography with one dominating center

We primarily focus on explaining housing prices and predicting housing price gradients in a Norwegian region with one dominating center (Stavanger). For such a geography spatial separation can be represented in a hedonic regression equation by a function of traveling distance from the city center. Several functions are tested, and some alternatives provide both a satisfying goodness-to-fit, consistent coefficient estimates, and intuitively reasonable predictions of housing price gradients. Still, not all commonly used functions are recommended. Spatial autocorrelation is removed when the hedonic function is properly specified.hedonic regression model; housing attributes; functional representation of spatial separation; spatial autocorrelation; housing price gradient; capitalization

Congested Interregional Infrastructure, Road Pricing and Regional Labour Markets

Traffic congestion and the policies to combat it have been studied extensively. However, most studies neglect the labour market impacts of congestion. Many also fail to account for the simultaneity between commuting and migration. This paper models impacts such as unemployment disparities, changes in commuting flows and changes in the flow of migrants by adopting an agent based simulation approach. This approach has the strength that it allows the simultaneous consideration of commuting, migration and labour force participation decisions. The results obtained have important theoretical and policy implications and show how an "optimal" charge may, in fact, be sub-optimal.Congestion; Road pricing; Agent-based approach; Spatial interaction; Infrastructure investment