Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou

Xu Zong; Lingyun Shi

doi:doi:10.11648/j.ijebo.20160406.12

| Peer-Reviewed

Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou

Xu Zong, Lingyun Shi

Published in International Journal of Economic Behavior and Organization (Volume 4, Issue 6)

Received: 6 March 2017 Published: 10 March 2017

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Studies have shown that local public goods has long been significantly capitalized into housing prices in a large number of first-tier cities in China. Residents can directly obtain the public goods by purchasing houses. In addition, more deeper researcher show that there is spatial heterogeneity in the capitalization rate of local public goods. In this paper, based on the transaction data of the new residential houses in Zhengzhou from 2006 to 2015, the Spatial Autoregressive model (SAR) and Geographical Weighted Regression (GWR) are uesed to explore premium effect of the high quality educational resources, subway stations and other local public goods. The empirical results show that, in Zhengzhou, the capitalization effect of "key primary schools" and subway stations on housing prices is significant, and the spatial heterogeneity of its capitalization effect exists. However, the effect of the parks and the top-hospitals is not significant in the real estate market of Zhengzhou.

Published in	International Journal of Economic Behavior and Organization (Volume 4, Issue 6)
DOI	10.11648/j.ijebo.20160406.12
Page(s)	53-58
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Local Public Goods, Capitalization Effect, Spatial Heterogeneity

References

[1]	Long F. J., Zheng S. Q. Value estimates of local pubulic services using a spatial econometric model. Jounal of Tsinghua Uni. (Sci. & Tech), 2009, Vol. 49, NO. 12.
[2]	Huang Jing, Shi Wei. The capitalization effect of urban public services in Shanghai. Journal of Urban Problems, 2015, 11.
[3]	Sun W. Z.，Zheng S. Q. Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity: A Case of Chengdu, Economics and Finance Management, 2015. 06.
[4]	Feng H, Lu M. Choose a school by buying house. Journal of World Economy. 2010, 12.
[5]	Bitter C, Mulligan G F, Dall’erba S. Incorporating spatial variation in housing attribute prices: a comparison of geographically weighted regression and the spatial expansion method. Journal of Geographical Systems, 2007, 9 (1): 7-27.
[6]	Bowman A W. An alternative method of cross-validation for the smoothing of density estimates. Biometrika, 1984, 71 (2): 353-360.
[7]	Brasington D M. Edge versus center: finding common ground in the capitalization debate. Journal of Urban Economics, 2002, 52 (3): 524-541.
[8]	Brunsdon C. Geographically weighted regression: a natural evolution of the expansion method for spatial data analysis. Environment and Planning A, 1998, 30: 1905-1927.
[9]	Can A. The Measurement of Neighborhood Dynamics in Urban House Prices. Economic Geography, 1990: 254-272.
[10]	Cervero R, Duncan M. Transit's value-added effects: light and commuter rail services.
[11]	Cho S. H., Bowker J. M, Park W M. Measuring the contribution of water and green space amenities to housing values: An application and comparison of spatially weighted hedonic models. Journal of Agricultural and Resource Economics, 2006: 485-507.
[12]	Cleveland W. S. Robust locally weighted regression and smoothing scatterplots. Journal of the American Statistical Association, 1979, 74 (368): 829-836.
[13]	Fotheringham A. S., Brunsdon C, Charlton M. Geographically weighted regression. Chichester: Wiley, 2002.
[14]	Guagliardo M. F. Spatial accessibility of primary care: concepts, methods and challenges. International Journal of Health Geographics, 2004, 3 (1): 3.
[15]	Haurin D. R., Brasington D. School quality and real house prices: Inter-and intrametropolitan effects. Journal of Housing Economics, 1996, 5 (4): 351-368.
[16]	Hilber C A L, Mayer C. Why do households without children support local public schools? Linking house price capitalization to school spending. Journal of Urban Economics, 2009, 65 (1): 74-90.
[17]	Kestens Y., Thériault M., Des Rosiers F. Heterogeneity in hedonic modelling of house prices: looking at buyers’ household profiles. Journal of Geographical Systems, 2006, 8 (1): 61-96.
[18]	Luo W. Using a GIS-based floating catchment method to assess areas with shortage of physicians. Health & Place, 2004, 10(1): 1-11.
[19]	Mcgrail M R, Humphreys J S. Measuring spatial accessibility to primary care in rural areas: Improving the effectiveness of the two-step floating catchment area method. Applied Geography, 2009, 29 (4): 533-541.
[20]	Monkkonen P. Demographic Transition, Economic Crisis and the Housing Deficit in Indonesia. Economic Crisis and the Housing Deficit in Indonesia, 2012.
[21]	Paelinck J. H. P., Klaassen L. H., Ancot J. P., et al. Spatial econometrics. Farnborough: Saxon House, 1979.
[22]	Rich R. C. Neglected issues in the study of urban service distributions: a research agenda. Urban Studies, 1979, 16 (2): 143-156.
[23]	Rosen S. Hedonic prices and implicit markets: product differentiation in pure competition. The Journal of Political Economy, 1974, 82 (1): 34-55.
[24]	Samuelson P. A. The pure theory of public expenditure. The Review of Economics and Statistics, 1954, 36 (4): 387-389.
[25]	Spencer J., Angeles G. Kernel density estimation as a technique for assessing availability of health services in Nicaragua. Health Services & Outcomes Research Methodology, 2007, 7 (3): 145-157.
[26]	Stadelmann D., Billon, S. Capitalization of Fiscal Variables and Land Scarcity. Urban Studies, 2012, 49 (7): 1571-1594.
[27]	Zheng S., Hu W., Wang R. How Much is a Good School Worth in Beijing? A Matching Regression Approach with Housing Price-Rent Comparison. Presented at Global Chinese Real Estate Congress (GCREC) 2012 Conference, Macao, China.

Cite This Article

Plain Text BibTeX RIS

APA Style

Xu Zong, Lingyun Shi. (2017). Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou. International Journal of Economic Behavior and Organization, 4(6), 53-58. https://doi.org/10.11648/j.ijebo.20160406.12

Copy | Download

ACS Style

Xu Zong; Lingyun Shi. Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou. Int. J. Econ. Behav. Organ. 2017, 4(6), 53-58. doi: 10.11648/j.ijebo.20160406.12

Copy | Download

AMA Style

Xu Zong, Lingyun Shi. Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou. Int J Econ Behav Organ. 2017;4(6):53-58. doi: 10.11648/j.ijebo.20160406.12

Copy | Download

@article{10.11648/j.ijebo.20160406.12,
  author = {Xu Zong and Lingyun Shi},
  title = {Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {4},
  number = {6},
  pages = {53-58},
  doi = {10.11648/j.ijebo.20160406.12},
  url = {https://doi.org/10.11648/j.ijebo.20160406.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20160406.12},
  abstract = {Studies have shown that local public goods has long been significantly capitalized into housing prices in a large number of first-tier cities in China. Residents can directly obtain the public goods by purchasing houses. In addition, more deeper researcher show that there is spatial heterogeneity in the capitalization rate of local public goods. In this paper, based on the transaction data of the new residential houses in Zhengzhou from 2006 to 2015, the Spatial Autoregressive model (SAR) and Geographical Weighted Regression (GWR) are uesed to explore premium effect of the high quality educational resources, subway stations and other local public goods. The empirical results show that, in Zhengzhou, the capitalization effect of "key primary schools" and subway stations on housing prices is significant, and the spatial heterogeneity of its capitalization effect exists. However, the effect of the parks and the top-hospitals is not significant in the real estate market of Zhengzhou.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou
AU  - Xu Zong
AU  - Lingyun Shi
Y1  - 2017/03/10
PY  - 2017
N1  - https://doi.org/10.11648/j.ijebo.20160406.12
DO  - 10.11648/j.ijebo.20160406.12
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 53
EP  - 58
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20160406.12
AB  - Studies have shown that local public goods has long been significantly capitalized into housing prices in a large number of first-tier cities in China. Residents can directly obtain the public goods by purchasing houses. In addition, more deeper researcher show that there is spatial heterogeneity in the capitalization rate of local public goods. In this paper, based on the transaction data of the new residential houses in Zhengzhou from 2006 to 2015, the Spatial Autoregressive model (SAR) and Geographical Weighted Regression (GWR) are uesed to explore premium effect of the high quality educational resources, subway stations and other local public goods. The empirical results show that, in Zhengzhou, the capitalization effect of "key primary schools" and subway stations on housing prices is significant, and the spatial heterogeneity of its capitalization effect exists. However, the effect of the parks and the top-hospitals is not significant in the real estate market of Zhengzhou.
VL  - 4
IS  - 6
ER  -

Copy | Download

Author Information

Xu Zong

School of Economics, Shanghai University, Shanghai, China
Lingyun Shi

School of Economics, Shanghai University, Shanghai, China

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Xu Zong, Lingyun Shi. (2017). Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou. International Journal of Economic Behavior and Organization, 4(6), 53-58. https://doi.org/10.11648/j.ijebo.20160406.12

Copy | Download

ACS Style

Xu Zong; Lingyun Shi. Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou. Int. J. Econ. Behav. Organ. 2017, 4(6), 53-58. doi: 10.11648/j.ijebo.20160406.12

Copy | Download

AMA Style

Xu Zong, Lingyun Shi. Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou. Int J Econ Behav Organ. 2017;4(6):53-58. doi: 10.11648/j.ijebo.20160406.12

Copy | Download

@article{10.11648/j.ijebo.20160406.12,
  author = {Xu Zong and Lingyun Shi},
  title = {Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {4},
  number = {6},
  pages = {53-58},
  doi = {10.11648/j.ijebo.20160406.12},
  url = {https://doi.org/10.11648/j.ijebo.20160406.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20160406.12},
  abstract = {Studies have shown that local public goods has long been significantly capitalized into housing prices in a large number of first-tier cities in China. Residents can directly obtain the public goods by purchasing houses. In addition, more deeper researcher show that there is spatial heterogeneity in the capitalization rate of local public goods. In this paper, based on the transaction data of the new residential houses in Zhengzhou from 2006 to 2015, the Spatial Autoregressive model (SAR) and Geographical Weighted Regression (GWR) are uesed to explore premium effect of the high quality educational resources, subway stations and other local public goods. The empirical results show that, in Zhengzhou, the capitalization effect of "key primary schools" and subway stations on housing prices is significant, and the spatial heterogeneity of its capitalization effect exists. However, the effect of the parks and the top-hospitals is not significant in the real estate market of Zhengzhou.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Research on the Capitalization Effect of Local Public Goods in House Price and Its Spatial Heterogeneity in Zhengzhou
AU  - Xu Zong
AU  - Lingyun Shi
Y1  - 2017/03/10
PY  - 2017
N1  - https://doi.org/10.11648/j.ijebo.20160406.12
DO  - 10.11648/j.ijebo.20160406.12
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 53
EP  - 58
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20160406.12
AB  - Studies have shown that local public goods has long been significantly capitalized into housing prices in a large number of first-tier cities in China. Residents can directly obtain the public goods by purchasing houses. In addition, more deeper researcher show that there is spatial heterogeneity in the capitalization rate of local public goods. In this paper, based on the transaction data of the new residential houses in Zhengzhou from 2006 to 2015, the Spatial Autoregressive model (SAR) and Geographical Weighted Regression (GWR) are uesed to explore premium effect of the high quality educational resources, subway stations and other local public goods. The empirical results show that, in Zhengzhou, the capitalization effect of "key primary schools" and subway stations on housing prices is significant, and the spatial heterogeneity of its capitalization effect exists. However, the effect of the parks and the top-hospitals is not significant in the real estate market of Zhengzhou.
VL  - 4
IS  - 6
ER  -

Copy | Download