The Train has Left the Station: Do Markets Value Intra-City Access to Inter-City Rail Connections
26 Pages Posted: 11 Mar 2009
Date Written: March 9, 2009
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.
Keywords: Property prices, transport innovation, inter-city connection, railroad, Berlin
JEL Classification: R21, R40, R53
Suggested Citation: Suggested Citation