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Neighbourhood externalities, structuring of the intra-urban space and price of property: evidences to the flat market in Belo Horizonte

Authors
  • Luiz Andrés Ribeiro Paixão

Keywords:
Economia urbana, preços hedônicos, planejamento urbano.
Abstract
The purpose of this paper is to provide an application of a hedonic model to estimate the implicit price of neighbourhood externalities in apartment prices in Belo Horizonte city. We included in the model a group of variables that we had judged to be relevant in the apartment’s price formation. Physical and location variables were included. Our main result is that the social composition of a neighbourhood is an important item in the valuation of an apartment. Characteristics like good condition, new building, located near the city centre and in a neighbourhood where there is a great commercial activity and good quality schools increases the price of an apartment. On the other hand, apartments located in a neighbourhood where there is great urban equipment or with high criminality level have lower prices. Key words: urban economics; hedonic price model; urban planning. JEL classification: R21. Artigo recebido em dez. 2008.
Additional Files
Published
2010-10-28
Section
Artigos
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