Public infrastructure and housing prices: An application of geographically weighted regression within the context of hedonic prices

Main Article Content

Juan Carlos Duque
Universidad EAFIT

Hermilson Velásquez Ceballos
Universidad EAFIT

Jorge Agudelo
Universidad EAFIT

Keywords

Real state, GWR, Geographically Weighted Regression, Hedonic prices, Metro station.

Abstract

The analysis of externalities in real state has been matter of study during the past few years. In this paper we use both conventional and spatial econometric model, as well as geographically weighted regression models, to measure the effect of the San Javier Metro Station (in Medellín, Colombia) on the housing prices of the surrounding area.

The main finding of this study is that the metro station has a positive impact on the prices of houses located within a radius of 600 meter from the station. However, the railroad track accessing the station has a negative impact on housing prices located nearby.

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Published
Dec 15, 2011

Article Details

How to Cite
Duque, J. C., Velásquez Ceballos, H., & Agudelo, J. (2011). Public infrastructure and housing prices: An application of geographically weighted regression within the context of hedonic prices. Ecos De Economía, 15(33), 99–122. Retrieved from https://publicaciones.eafit.edu.co/index.php/ecos-economia/article/view/480
Issue
Vol. 15 No. 33 (2011)
Section
Articles
Supporting Agencies
Author Biographies

Juan Carlos Duque, Universidad EAFIT

PhD en estudios empresariales. Research in Spatial Economics (RISE-group), Department of Economics, Universidad EAFIT.

Hermilson Velásquez Ceballos, Universidad EAFIT

PhD en matemáticas. Research in Spatial Economics (RISE-group), Department of Fundamental Sciences, Universidad EAFIT.

Jorge Agudelo, Universidad EAFIT

Master en Economía. Research in Spatial Economics (RISE-group), Department of Economics, Universidad EAFIT.

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