The Property Value Premium of a Place of Worship

8 Pages Posted: 19 Apr 2012  

Eric C. Thompson

University of Nebraska at Lincoln - Department of Economics

Roger Butters

University of Texas at Arlington - College of Business Administration - Department of Economics

Benjamin T. Schmitz

University of New South Wales (UNSW)

Date Written: April 2012

Abstract

Using a unique data set of residential housing values, we improve on previous hedonic pricing and event studies literature to estimate the amenity effects of a new religious structure on local property values. We improve on previous research by extending our analysis with a pre‐ and post‐treatment model. Using a pre‐ and post‐treatment model, we do not find that the religious structure that we examined influenced the value of surrounding properties in the period after its completion. The results suggest that previous research using only post‐completion data may mischaracterize the amenity effects of religious structures.

JEL Classification: R3

Suggested Citation

Thompson, Eric C. and Butters, Roger and Schmitz, Benjamin T., The Property Value Premium of a Place of Worship (April 2012). Contemporary Economic Policy, Vol. 30, Issue 2, pp. 215-222, 2012. Available at SSRN: https://ssrn.com/abstract=2042331 or http://dx.doi.org/10.1111/j.1465-7287.2011.00255.x

Eric C. Thompson

University of Nebraska at Lincoln - Department of Economics ( email )

Lincoln, NE 68588-0489
United States

Roger Butters

University of Texas at Arlington - College of Business Administration - Department of Economics ( email )

Box 19479 UTA
Arlington, TX 76019
United States

Benjamin T. Schmitz

University of New South Wales (UNSW) ( email )

Sydney, NSW 2052
Australia

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