Historic Amenities and Housing Externalities: Evidence from the Netherlands

25 Pages Posted: 25 Oct 2017

See all articles by Hans Koster

Hans Koster

Vrije Universiteit Amsterdam, School of Business and Economics

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Date Written: October 2017

Abstract

We study the economic effects of public investments in historic amenities by looking at their impact on house prices. We distinguish between direct and indirect effects of investments. A nationwide housing transaction is used as well as data on investments in cultural heritage. A 1 million euro per square kilometre increase in investments in cultural heritage leads to a price increase of 1.5–3.0% of non‐targeted buildings. We do not find evidence that the maintenance state of non‐eligible properties is improved, suggesting that any price effect due to investments in cultural heritage is a direct effect of investments.

Keywords: cultural heritage, historic amenities, housing externalities, hedonic pricing

Suggested Citation

Koster, Hans and Rouwendal, Jan, Historic Amenities and Housing Externalities: Evidence from the Netherlands (October 2017). The Economic Journal, Vol. 127, Issue 605, pp. F396-F420, 2017, Available at SSRN: https://ssrn.com/abstract=3058413 or http://dx.doi.org/10.1111/ecoj.12477

Hans Koster (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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