CEU Electronic Theses and Dissertations, 2023
| Author | Hamberger, Caroline |
|---|---|
| Title | Mind the Gap: Effects of the U5 Subway Line on Real Estate Values in Vienna |
| Summary | This thesis examines the effect of the construction of the new U5 subway line in Vienna, Austria on real estate prices of units within a 1000-meter radius of the stations. Four Difference-in-Difference (DiD) models were constructed to estimate any variation in property prices that could be attributed to the subway construction. The post-period growth rate for property prices was found to be slower in properties near the U5, as opposed to those located farther away. This pattern was consistent across three of the four models, suggesting that the disruptive effects that construction often entails, including noise pollution and congested traffic near construction sites, might outweigh the anticipation of the beneficial new subway access. This thesis highlights the importance for policymakers to also consider short-term adverse effects of large infrastructure projects, along with their benefits. It is important to note that the parallel trends assumption, which is the underlying assumption of any DiD analysis, was violated. This means that results need to be interpreted with care and should be considered as indicative, rather than causal. |
| Supervisor | Sergey Lychagin |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2023/hamberger_caroline.pdf |
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