Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145276
Authors: 
Fesselmeyer, Eric
Liu, Haoming
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10142
Abstract: 
We estimate the network externality of a public transit system by examining the effects of its expansion on the housing market. Our results show that a major expansion of Singapore's Mass Rapid Transit (MRT) system increased the price of apartments within 0.5 km of a pre-expansion station by 1.6% to 2.1% relative to apartments that were further away from a station. Evaluated at the mean housing price, the expansion increased the value of pre-connected apartments by at least S$386 million, which is equivalent to about 8% of the estimated S$5 billion cost of the expansion.
Subjects: 
public transportation
housing
network effects
JEL: 
H4
R21
R42
H23
Document Type: 
Working Paper

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