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Urban Studies and Planning Commons

Open Access. Powered by Scholars. Published by Universities.®

2013

Economics

Selected Works

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Articles 1 - 1 of 1

Full-Text Articles in Urban Studies and Planning

Does Atlanta Value Marta? Selecting An Autoregressive Model To Recover Willingness To Pay, Juan Moreno-Cruz, Gregory Macfarland, Laurie Garrow Dec 2012

Does Atlanta Value Marta? Selecting An Autoregressive Model To Recover Willingness To Pay, Juan Moreno-Cruz, Gregory Macfarland, Laurie Garrow

Juan B. Moreno-Cruz

Understanding homeowners’ marginal willingness-to-pay (MWTP) for proximity to public transportation infrastructure is important for planning and policy. Naïve estimates of MWTP, however, may be biased as a result of spatial dependence, spatial correlation, and/or spatially endogenous variables. In this paper we discuss a class of spatial autoregressive models that control for these spatial effects, and apply them to sample data collected for the Atlanta, Georgia housing market. We provide evidence that a general-to-specific model selection methodology that relies on the generality of the spatial Durbin model (SDM) should be preferred to the classical specific-to-general methodology that begins with an ...