Publication Type
Journal Article
Version
publishedVersion
Publication Date
7-2018
Abstract
We estimate the network effects of a public transit system by examining the impact of its expansion on housing prices. 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 1.8% 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$455 million in aggregate, which is equivalent to 9% of the estimated S$5 billion cost of the expansion.
Keywords
Public transportation, Housing, Network effects
Discipline
Transportation | Urban Studies and Planning
Research Areas
Applied Microeconomics
Publication
Regional Science and Urban Economics
Volume
71
First Page
46
Last Page
61
ISSN
0166-0462
Identifier
10.1016/j.regsciurbeco.2018.04.010
Publisher
Elsevier
Citation
FESSELMEYER, Eric and LIU, Haoming.
How much do users value a network expansion? Evidence from the public transit system in Singapore. (2018). Regional Science and Urban Economics. 71, 46-61.
Available at: https://ink.library.smu.edu.sg/cis_research/4
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://doi.org/10.1016/j.regsciurbeco.2018.04.010