Semester

Spring

Date of Graduation

2021

Document Type

Dissertation

Degree Type

PhD

College

Davis College of Agriculture, Natural Resources and Design

Department

Division of Resource Economics & Management

Committee Chair

Heather Stephens

Committee Member

Xiaoli Etienne

Committee Member

Brad Humphreys

Committee Member

Peter Schaeffer

Abstract

This dissertation consists of three essays that use applied econometric analysis and other analytical methods from various economic fields, including regional and urban economics, natural resource economics, housing economics, and sports economics. In all three essays, I use housing data to value various amenities and disamenities. Using several variations on the hedonic method, I am able to uncover the values based on the capitalization effect. I consider the effect of natural resource development by examining shale gas development, as well as the effect of urban development projects, including public transportation and sports facilities.

In the first essay of my dissertation, I assess the how shale gas development affects property values in West Virginia. Overall, my paper makes at least three contributions to the literature: 1) examining the impact of new shale development in a region with a long history of resource extraction and economic distress, 2) studying later periods than in other related research, and 3) using a methodology that deals with using hedonic pricing methods in a sparse housing market. I find that the price of nearby houses decreases as the number of surrounding wells increases. I also find some evidence that this effect varies over time and that the negative capitalization effect attenuates over space.

In my second essay, I analyze how new metro lines in Los Angeles are capitalized into nearby house prices. The complex housing markets of Los Angeles allow me to assess this effect in different neighborhoods that may not value access to metro lines the same. Using a hedonic difference-in-differences approach, I find that the capitalization effect does vary. Some residents value living near new metro stations, especially those in lower/middle income areas who are more likely to use public transportation, while others do not.

In the third and final essay of my dissertation, I assess the amenity value of sports facilities. Specifically, I examine the capitalization effect on housing values of proximity to the Staples Center in Los Angeles, which is the most intensely utilized professional sports venue in the United States. Results indicate that the arena opening increased nearby house prices and that there were also positive “anticipation” effects, where nearby housing prices increased following the announcement of the new arena location and local government approval.

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