Abstract
Cross-city spillovers among housing markets are usually modelled by the classical spatial autoregressive models, which usually suffer from identification problems in practice. This paper investigates the cross-city house price spillovers arising from city network externalities wherein a city's connections with other cities in the urban network create the external house price premium through productivity and amenity gains. Using a cross-sectional data set for an urban system in eastern China, we present significant evidence for positive network spillovers by the application of spatial lag of X model and spatial Durbin error model. Besides, common shocks are also proved to be responsible for cross-city dependence of house prices.
Original language | English |
---|---|
Pages (from-to) | 1065-1085 |
Number of pages | 21 |
Journal | Papers in Regional Science |
Volume | 99 |
Issue number | 4 |
DOIs | |
Publication status | Published - 2020 |
Keywords
- China
- city network externalities
- house prices
- spatial econometrics
- spillovers