Border Effects in House Prices

27 Pages Posted: 4 Jun 2020

See all articles by Martin Micheli

Martin Micheli

affiliation not provided to SSRN

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Jasper Dekkers

Tinbergen Institute

Date Written: Autumn 2019

Abstract

This article estimates the effect of the Dutch–German border on house prices. We argue that the difference between house prices at the border indicates the willingness to pay to stay in a country compared to living across the border. After a change in the tax rules in 2001, migration from the Netherlands to Germany increased substantially and the gradient of Dutch house price towards the German border steepened. Combining a German and Dutch real estate dataset and using different estimation strategies, we find that asking prices of comparable housing drop by about 16% when one crosses the Dutch–German border.

Suggested Citation

Micheli, Martin and Rouwendal, Jan and Dekkers, Jasper, Border Effects in House Prices (Autumn 2019). Real Estate Economics, Vol. 47, Issue 3, pp. 757-783, 2019, Available at SSRN: https://ssrn.com/abstract=3617166 or http://dx.doi.org/10.1111/1540-6229.12255

Martin Micheli (Contact Author)

affiliation not provided to SSRN

No Address Available

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

Jasper Dekkers

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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