Abstract
The impact of aircraft noise on housing is a much-debated topic. To meet the increasing demand for air transportation, airports seek to expand their capacities, but studies looking at market responses to a spatial redistribution of noise pollution are scarce. Using online advertisements of rental apartments around a large European airport (ZRH) and an unexpected change in flight regulations, we investigate the post-shock dynamics in apartment rents and tenants' search behaviour. We find that rents take about two years to stabilise to a new equilibrium value. After this period there is a constant markup (discount) for apartments exposed to less (more) aircraft noise. Moreover, the number of advertisement clicks as a proxy for search behaviour and information acquisition is significantly higher during the adjustment period. Our results have implications regarding the calculation of capitalisation effects in quasi-experimental hedonic valuations, which need to take into account off-equilibrium periods.
Original language | English |
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Pages (from-to) | 918-938 |
Number of pages | 21 |
Journal | Oxford Economic Papers |
Volume | 69 |
Issue number | 4 |
DOIs | |
Publication status | Published - 1 Oct 2017 |
ASJC Scopus subject areas
- Economics and Econometrics