Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/118777 
Year of Publication: 
2010
Series/Report no.: 
50th Congress of the European Regional Science Association: "Sustainable Regional Growth and Development in the Creative Knowledge Economy", 19-23 August 2010, Jönköping, Sweden
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
In this paper, I examine the relationship between housing prices and transport improvements in case of tunnel in a locality in an extremely remote area of Iceland - a village far north called Siglufjörður. It have been documented that transportation improvements tend to influence housing prices, due to the general consumer preference for access over amenity value. I will examine whether this relationship holds in case of cul de sac in an extremely remote community in Iceland. A macro panel data set from Iceland will be used. It provides several essential variables for 79 municipalities in Iceland from 1981 through 2006. The results suggest that the impact is negligible against housing prices in this case. Further inspection shows that the price is sticky in the most relevant region, but the quantity is flexible. Thus, the estimation of the model will be repeated as an inverse demand function, where the housing price as exogene variable is replaced by sales quantity.
Subjects: 
Housing prices
Transportation improvements
Distance gradient
Local
JEL: 
R40
R21
R41
C23
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.