Seminario Applied

Antonio Rocamora

Universidad de Alicante & Frontier Economics


Seminar 3 – 14:30


In this paper, we use new micro-data of house rental contracts in Madrid and GIS (Geographic Information Systems) data to estimate the valuation of consumers to amenities. To do this, we take advantage of the implicit information in housing rental prices using an hedonic regression model. Our results are in line with urban economics literature, the evidence suggest that residents care about accessibility variables and they are willing to pay higher rents to be near to places with better accessibility to leisure (in particular, to culture services and green spaces) and higher employment density. We also extend our model to estimate the value of the M-30 renewal project, in which part of this road was redirected underground.

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