caa a22 4500 445316624 CHVBK 20180317142650.0 cr unu---uuuuu 170323e20110401xx s 000 0 eng 10.1007/s11146-009-9208-9 doi (NATIONALLICENCE)springer-10.1007/s11146-009-9208-9 Nonlinear Spatial and Temporal Effects of Highway Construction on House Prices [Elektronische Daten] [Ekaterina Chernobai, Michael Reibel, Michael Carney] This paper studies the effect of a newly completed highway extension on home prices in the surrounding area. We analyze non-linearities in both the effect of distance from the highway and the effect of time relative to the completion of the road segment. While previous studies of the effects of nearby amenities on property and land values have focused on either cross-sectional spatial or temporal patterns, the joint analysis of the two dimensions has not been thoroughly investigated. We use home sale data from a period of 11years centered around the completion of a new highway extension in metropolitan Los Angeles. We combine a standard hedonic model with a spline regression technique to allow for non-linear variations of the effect along the temporal and spatial dimensions. Our empirical results show that the maximum home price appreciation caused by the new highway extension occurs at moderate distances from the highway after it is completed. Lower price increases for this period are observed for homes sold closer to the highway or much further away. This price pattern gradually fades away in the years following the construction completion. A similar, although weaker, price pattern is also observed in the first years of the construction period. There is no statistically significant distance dependency in the 2years in our sample prior to the beginning of the construction. This indicates that the housing market is not fully efficient as the information about the impending construction of the highway is not immediately incorporated into sales prices. Springer Science+Business Media, LLC, 2009 Spatial and temporal dependence nationallicence Distance effects nationallicence House prices nationallicence Spline regression nationallicence GIS nationallicence Chernobai Ekaterina Department of Finance, Real Estate and Law, California State Polytechnic University, Pomona, 3801 West Temple Avenue, 91768, Pomona, CA, USA aut Reibel Michael Department of Geography and Anthropology, California State Polytechnic University, Pomona, 3801 West Temple Avenue, 91768, Pomona, CA, USA aut Carney Michael Department of Finance, Real Estate and Law, California State Polytechnic University, Pomona, 3801 West Temple Avenue, 91768, Pomona, CA, USA aut The Journal of Real Estate Finance and Economics Springer US; http://www.springer-ny.com 42/3(2011-04-01), 348-370 0895-5638 42:3<348 2011 42 11146 https://doi.org/10.1007/s11146-009-9208-9 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11146-009-9208-9 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Chernobai Ekaterina Department of Finance, Real Estate and Law, California State Polytechnic University, Pomona, 3801 West Temple Avenue, 91768, Pomona, CA, USA aut NATIONALLICENCE 700 1- Reibel Michael Department of Geography and Anthropology, California State Polytechnic University, Pomona, 3801 West Temple Avenue, 91768, Pomona, CA, USA aut NATIONALLICENCE 700 1- Carney Michael Department of Finance, Real Estate and Law, California State Polytechnic University, Pomona, 3801 West Temple Avenue, 91768, Pomona, CA, USA aut NATIONALLICENCE 773 0- The Journal of Real Estate Finance and Economics Springer US; http://www.springer-ny.com 42/3(2011-04-01), 348-370 0895-5638 42:3<348 2011 42 11146 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer