Adjustments in the housing market after an environmental shock: evidence from a large-scale change in aircraft noise exposure
The impact of aircraft noise on housing is a much-debated topic. To meet the increasing demand for air transportation, airports seek to expand their capacities, but studies looking at market responses to a spatial redistribution of noise pollution are scarce. Using online advertisements of rental ap...
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| Main Authors: | , , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
12 January 2017
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| In: |
Oxford economic papers
Year: 2017, Volume: 69, Issue: 4, Pages: 918-938 |
| ISSN: | 1464-3812 |
| DOI: | 10.1093/oep/gpw071 |
| Online Access: | Verlag, Volltext: http://dx.doi.org/10.1093/oep/gpw071 Verlag, Volltext: https://academic.oup.com/oep/article/69/4/918/2900582 |
| Author Notes: | by Christian Almer, Stefan Boes, and Stephan Nüesch |
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| 520 | |a The impact of aircraft noise on housing is a much-debated topic. To meet the increasing demand for air transportation, airports seek to expand their capacities, but studies looking at market responses to a spatial redistribution of noise pollution are scarce. Using online advertisements of rental apartments around a large European airport (ZRH) and an unexpected change in flight regulations, we investigate the post-shock dynamics in apartment rents and tenants’ search behaviour. We find that rents take about two years to stabilise to a new equilibrium value. After this period there is a constant markup (discount) for apartments exposed to less (more) aircraft noise. Moreover, the number of advertisement clicks as a proxy for search behaviour and information acquisition is significantly higher during the adjustment period. Our results have implications regarding the calculation of capitalisation effects in quasi-experimental hedonic valuations, which need to take into account off-equilibrium periods. | ||
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