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

26 Pages Posted: 11 Mar 2009  

Gabriel M. Ahlfeldt

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Date Written: March 9, 2009

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.

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

JEL Classification: R21, R40, R53

Suggested Citation

Ahlfeldt, Gabriel M., The Train has Left the Station: Do Markets Value Intra-City Access to Inter-City Rail Connections (March 9, 2009). Available at SSRN: https://ssrn.com/abstract=1355969 or http://dx.doi.org/10.2139/ssrn.1355969

Gabriel M. Ahlfeldt (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
WC2A 2AE London
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/ahlfeldg/

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