The Train has Left the Station: Do Markets Value Intra-City Access to Inter-City Rail Connections

Abstract:     
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.

Number of Pages in PDF File: 26

Keywords: Property prices, transport innovation, inter-city connection, railroad, Berlin

JEL Classification: R21, R40, R53

working papers series