Regional variations in the price of building land

Abstract

"In this paper, we analyze the enormous variation in the price of building land across West German regions. We outline a theoretical model that ties a household's willingness to pay for building land to the inter-temporal value of employment. Using data for NUTS 3 regions the theoretically derived impact of labor market variables and other influences is investigated. We show that spatial dependence through spatially lagged variables plays a crucial role. According to our findings, the variation in the price of building land can be explained reasonably well if one adequately takes into account the specific patterns of spatial interaction." (Author's abstract, IAB-Doku) ((en))

Cite article

Möller, J. (2009): Regional variations in the price of building land. A spatial econometrics approach for West Germany. In: The annals of regional science, Vol. 43, No. 1, p. 113-132. DOI:10.1007/s00168-007-0207-6