Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/124569
Authors: 
Ahlfeldt, Gabriel
Holman, Nancy
Year of Publication: 
2015
Series/Report no.: 
55th Congress of the European Regional Science Association: "World Renaissance: Changing roles for people and places", 25-28 August 2015, Lisbon, Portugal
Abstract: 
We propose a method to estimate the capitalized value of the architectural design quality of a neighbourhood. Our economic design premium is identified by spatially differentiating property prices and design quality within neighbourhoods and comparing the differences across neighbourhoods. We apply our method to 47 conservation area neighbourhoods in England in which we analyse around 7900 property transactions and interview more than 500 residents. We find a capitalization effect of about 25.4% (£38.7k) associated with a one-step increase on a five-step scale ranging from not at all-distinctive to very distinctive. Our results suggest that this effect is at least partially driven by an architectural externality.
Subjects: 
Architecture
beauty
boundary discontinuity
conservation areas
design
Englan
JEL: 
R52
D23
C7
Document Type: 
Conference Paper

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