Journal article
Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market
Environmental and Resource Economics, Vol.68(2), pp.319-341
10/2017
DOI: 10.1007/s10640-016-0020-8
Abstract
In this study we utilize a hedonic property price analysis to examine changes in the implicit price of water quality given housing market fluctuations over time. We analyze Martin County, Florida waterfront home sales from 2001 to 2010 accounting for the associated significant real estate fluctuations in this area through flexible econometric controls in space and time. We apply a segmented regression methodology to identify housing market price instability over time, interact water quality with these identified market segmentations, and embed these interactions within a spatial fixed effect model to further account for any spatial heterogeneity in the waterfront market. Results indicate that water quality improvement is associated with higher property values. We find no evidence that the economic downturn crowded out concern for the water quality in this area. We further impute an implicit prices of $2614, evaluated at the sample mean, for 1 % point increase in the water quality grade.
Details
- Title: Subtitle
- Housing Market Fluctuations and the Implicit Price of Water Quality: Empirical Evidence from a South Florida Housing Market
- Creators
- Okmyung Bin - East Carolina UniversityJeffrey Czajkowski - University of PennsylvaniaJingyuan Li - M-SystemsGabriele Villarini - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Environmental and Resource Economics, Vol.68(2), pp.319-341
- Publisher
- Springer Netherlands
- DOI
- 10.1007/s10640-016-0020-8
- ISSN
- 0924-6460
- eISSN
- 1573-1502
- Language
- English
- Date published
- 10/2017
- Academic Unit
- Civil and Environmental Engineering; IIHR--Hydroscience and Engineering
- Record Identifier
- 9984197268102771
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