CEU Electronic Theses and Dissertations, 2013
| Author | Márk, Lili Katalin |
|---|---|
| Title | The Effect of Highways on Residential Property Prices in Hungary |
| Summary | In this thesis I analyze the effect of the new sectors of highway M6 on the nearby residential property prices. To address the omitted variable problem and endogeneity that appear in a simple cross-section or before-after analysis I use the difference-in-differences method. In particular I compare prices between 2008 and 2011. My treatment group consists of those properties that are at most 10 km away from the highway and the control group includes all properties further away but for which highway M6 is the closest highway route. I find that the selling price of properties in the treatment group after the opening of the highway is around 11-15% higher compared to the control group. Using a restricted sample without the two big county capitals in my sample (Pécs and Szekszárd) I find that the “highway premium” is even higher being around 24-27%. I also estimate continuous treatment models that yield much less robust results. |
| Supervisor | Lieli, Róbert |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2013/mark_lili.pdf |
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