Home Prices and Urban Corridors

摘要

This paper describes a semiparametric procedure to recoverwillingness to pay for housing and neighborhood attributes usinga hedonic pricing model that incorporates spatial autocorrelation.To model taste heterogeneity, I estimate consumer preferencesfrom parcel-level attributes in the form of household-specificrandom utility coefficients. The application here provides a wayto reconcile home prices with the synergy created by the spatialdependence of residential homes and urban corridors.Specifically, the respective accessibility and nuisance effects of acommercial, an industrial/ transportation, a recreational corridor,and a highway, in Minneapolis are estimated. Ultimately, thispaper addresses the question of how different types ofhouseholds value different local economic development andhousing attributes.