0000000000275857
AUTHOR
Diègo Legros
A Spatial Difference-in-Differences Estimator to Evaluate the Effect of Change in Public Mass Transit Systems on House Prices
Evaluating the impact of public mass transit systems on real-estate values is an important application of the hedonic price model (HPM). Recently, a mathematical transformation of this approach has been proposed to account for the potential omission of latent spatial variables that may overestimate the impact of accessibility to mass transit systems on values. The development of a Difference-in-Differences (DID) estimator, based on the repeat-sales approach, is a move in the right direction. However, such an estimator neglects the possibility that specification of the price equation may follow a spatial autoregressive process with respect to the dependent variable. The objective of this pap…
Location theories and business location decision: A micro-spatial investigation of a nonmetropolitan area in Canada
This paper draws on location theories to statistically identify the relationship between the location of individual business establishments and the characterization of their local economic environment. Taking a micro-spatial perspective, the paper develops indicators from distance-based measures (DBM) to serve as independent variables in a discrete choice model (DCM). Using a 2006 database of individual business establishments in the Lower-St-Lawrence region—a coherent, nonmetropolitan subsystem of cities in the province of Québec, Canada—we provide an empirical analysis of the determinants of individual establishments’ location decisions in relation to their main economic activity within a…
A Spatiotemporal Solution for the Simultaneous Sale Price and Time-on-the-Market Problem
There exists an important methodological challenge when dealing with sale price and time-on-the-market variables because both variables are simultaneously determined and related to the motivation of the sellers and buyers. Exploiting the fact that transactions occur over space and time, we propose a two-stage approach based on instrumental variables (IV) built from information collected from previous transactions. The unidirectional temporal property and the fact that other transactions are exogenous from the perspective of a single buyer or seller are exploited to evaluate the effect of the sale price on time-on-the-market, and the effect of time-on-the-market on the sale price. Based on 2…
Spatial econometrics and the hedonic pricing model: what about the temporal dimension
Recent ready access to free software and toolbox applications is directly impacting spatial econometric modelling when working with geolocated data. Spatial econometric models are valuable tools for taking into account the possible latent structure of the price determination process and ensuring that the coefficients estimated are unbiased and efficient. However, mechanical applications can potentially bias estimated coefficients if spatial data is pooled over time because the applications consider the spatial dimension alone. Spatial models neglect the fact that data (e.g. real estate) may consist of a collection of spatial data pooled over time, and that time relations generate a unidirec…
Dealing with spatial data pooled over time in statistical models
Recent developments in spatial econometrics have been devoted to spatio-temporal data and how spatial panel data structure should be modeled. Little effort has been devoted to the way one must deal with spatial data pooled over time. This paper presents the characteristics of spatial data pooled over time and proposes a simple way to take into account unidirectional temporal effect as well as multidirectional spatial effect in the estimation process. An empirical example, using data on 25,357 single family homes sold in Lucas County, OH (USA), between 1993 and 1998 (available in the MatLab library), is used to illustrate the potential of the approach proposed.
From bus to tramway: Is there an economic impact of substituting a rapid mass transit system? An empirical investigation accounting for anticipation effect
Abstract Hedonic pricing models and price equations have been extensively used to retrieve the implicit prices of urban externalities through real estate markets. Many applications have been devoted to investigating the impact of new mass transit systems, such as rail infrastructures. However, the implementation of such infrastructures usually takes some time and markets can react with an anticipation effect that can vary according to the different development phases. Moreover, the impact may be different if it acts as a substitute to existing rapid transit services. This paper focuses on the impact of substituting bus rapid transit (BRT) for light rail transit (LRT) services, taking into a…
Modeling Spatial Data Pooled over Time: Schematic Representation and Monte Carlo Evidences
The spatial autocorrelation issue is now well established, and it is almost impossible to deal with spatial data without considering this reality. In addition, recent developments have been devoted to developing methods that deal with spatial autocorrelation in panel data. However, little effort has been devoted to dealing with spatial data (cross-section) pooled over time. This paper endeavours to bridge the gap between the theoretical modeling development and the application based on spatial data pooled over time. The paper presents a schematic representation of how spatial links can be expressed, depending on the nature of the variable, when combining the spatial multidirectional relatio…
A Comprehensive Spatiotemporal Framework for Hedonic Pricing: Integrating the Comparable Sales Approach and Minimizing Spatial Omitted Variable Bias
This paper develops a theoretical and methodological framework that integrates Hedonic Pricing (HP), grid comparable sales approach (CSA), and nearest neighbors into a general spatiotemporal specification. By explicitly providing a theoretical justification for introducing spatial (or spatiotemporal) econometrics to HP, this approach is not only relevant to house price forecasting and automated valuation models (AVM) but also to valuing environmental goods capitalized in housing and to all other fields employing house pricing models. The resulting econometric CSA and spatiotemporal Durbin models provide higher prediction accuracy and reliability to alternatives by reducing the spatially-del…
French firms’ strategies for protecting their intellectual property
In attempting to protect their innovations, firms can choose from a range of mechanisms, which may be either non-statutory (trade secrets, design complexity, and lead-time advantage over competitors) or statutory (patent, design registration, trademark, copyright). Yet, little is known about how firms do actually make their choices from among these different appropriability mechanisms. The aim of this paper is to determine how French firms’ use of intellectual property protection mechanisms relates to the type of innovation, the characteristics of the market sector in which they operate, the firms’ characteristics, and their human resources strategies. Our empirical model draws on four Fren…
Decomposing and Interpreting Spatial Effects in Spatio-Temporal Analysis: Evidences for Spatial Data Pooled Over Time
Empirical applications using individual spatial data pooled over time usually neglect the fact that such data are not only spatially localized: they are also collected over time, i.e. temporally localized. So far, little effort has been devoted to proposing a global way for dealing with spatial data (cross-section) pooled over time, such as real estate transactions, business start-up, crime and so on. However, the spatial effect, in such a context, can be decomposed in two different components: a multidirectional spatial effect (same time period) and a unidirectional spatial effect (previous time period). Based on real estate literature, this chapter presents different spatio-temporal autor…
Technology spillover and TFP growth: A spatial Durbin model
Beginning with a model in which technological progress is reflected by product variety, we provide a structural approach to estimate technology spillovers allowing for spatial interdependencies. To this end, we first present a theoretical model of TFP growth by decomposing TFP into quality and variety components. We address the quality component by introducing a country׳s distance to the technological frontier. Quality is assumed to be a negative function of the technological gap of country i with respect to its own technological frontier. This technological threshold is defined as the geometric means of knowledge levels in all countries. We deal with the variety component by using R&D expe…
Past price “memory” in the housing market: testing the performance of different spatio-temporal specifications.
ABSTRACTRecent methodological developments provide a way to incorporate the temporal dimension when accounting for spatial effects in hedonic pricing. Weight matrices should decompose the spatial effects into two distinct components: bidirectional contemporaneous spatial connections; and unidirectional spatio-temporal effects from past transactions. Our iterative estimation approach explicitly analyses the role of time in price determination. The results show that both spatio-temporal components should be included in model specification; past transaction information stops contributing to price determination after eight months; and limited temporal friction is exhibited within this period. T…
Putting time into space: the temporal coherence of spatial applications in the housing market
International audience; Relationships between past events, future expectations and present decisions, typically examined through a temporal prism within applied economics, have been lately moving to the spatial dimension through spatial econometrics. However, violations of the “arrow of time”, and thus causality, have been identified in spatial econometric techniques applied to spatio-temporal data consisting of observations each at a specific location and distinct moment in time. A comprehensive review classifies for the first time several redresses to this issue in a currently fragmented literature. This paper puts back the temporal dimension into spatial Hedonic Pricing models through a …
Dynamics of female labour force participation in France
International audience; This article formulates and estimates a structural intertemporal model of labour force participation. Relying on theoretical characterizations derived from an economic model of lifetime behaviour, we estimate a dynamic probit model with correlated random effects using longitudinal data to allow for a dynamic structure. The model is applied to a panel of married women drawn from the 1997–2002 French Labour Force surveys in order to represent their participation behaviour. It is estimated by maximum simulated likelihood. Our results show that women’s decisions to go out to work are characterized by significant state dependence, unobserved heterogeneity and negative ser…