The Effect of a Sports Stadium on Housing Rents: An Application of Geographically Weighted Regression

• Agudelo Torres, Jorge Enrique ^[1] ; Agudelo Torres, Gabriel Alberto ^[1] ; Franco Arbeláez, Luis Ceferino ^[1] ; Franco Ceballos, Luis Eduardo ^[1]
  1. [1] Instituto Tecnológico Metropolitano

     Instituto Tecnológico Metropolitano

     Colombia

     
• Localización: Ecos de Economía, ISSN-e 1657-4206, Vol. 19, Nº. 40, 2015, págs. 66-80
• Idioma: inglés
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• Resumen

  • Researchers have determined that real estate prices vary in continuous ways as a function of spatial characteristics.  In this study we examine whether geographically weighted regression (GWR) provides different estimates of price effects around a sports stadium than more traditional regression techniques.  We find that an application of GWR with hedonic prices finds that the stadium has a negative external effect on housing rents that extends outward 560 meters, in contrast to the positive external effect on housing rents found using a conventional estimation technique.