The Impacts of Transportation Infrastructure on Property Values: A Higher-Order Spatial Econometrics Approach

22 Pages Posted: 30 Jun 2007

See all articles by Jeffrey Cohen

Jeffrey Cohen

University of Connecticut - School of Business

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics; National Bureau of Economic Research (NBER); University of Hartford - Barney School of Business

Abstract

We evaluate the impacts of enhanced transportation systems on property values for U.S. manufacturing firms, allowing for higher-order spatial error correlation. We use a state-level model of production cost and input demand that recognizes the productive contribution of public transportation infrastructure stocks. Our findings include significant impacts on property shadow values and input composition from both public highway and airport investment. We also find that these effects have a spatial dimension that depends on the proximity of the transport system; at least one and as many as three spatial error lags are significant in our estimating equations. Further, recognizing production growth from transportation system improvements augments the associated incentives for private capital investment.

Suggested Citation

Cohen, Jeffrey and Morrison Paul, Catherine J., The Impacts of Transportation Infrastructure on Property Values: A Higher-Order Spatial Econometrics Approach. Journal of Regional Science, Vol. 47, No. 3, pp. 457-478, August 2007, Available at SSRN: https://ssrn.com/abstract=997441 or http://dx.doi.org/10.1111/j.1467-9787.2007.00516.x

Jeffrey Cohen (Contact Author)

University of Connecticut - School of Business ( email )

368 Fairfield Road
Storrs, CT 06269-2041
United States

Catherine J. Morrison Paul

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
916-752-0469 (Phone)
916-752-5614 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

University of Hartford - Barney School of Business

200 Bloomfield Ave
West Hartford, CT 06117
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
16
Abstract Views
1,566
PlumX Metrics