RT Journal Article
SR Electronic
T1 Maintaining Public Goods: The Capitalized Value of Local Park Renovations
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 96
OP 116
DO 10.3368/le.92.1.96
VO 92
IS 1
A1 Mitchell R. Livy
A1 H. Allen Klaiber
YR 2016
UL http://le.uwpress.org/content/92/1/96.abstract
AB This study provides new evidence of the capitalized value of local parks by estimating the impact on surrounding home prices associated with renovations of specific local park attributes. These results shed light on an empirical puzzle in the existing literature that single-family residential homeowners have a surprisingly low valuation associated with living in close proximity to local parks. Using property fixed effects models with time-varying renovations data, we disaggregate the bundle of amenities comprising local parks and find that the capitalization of renovations is heterogeneous and depends on the specific park attributes undergoing renovation. (JEL Q51, Q58)