Borrowed sizes: A hedonic price approach to the value of network structure in public transport systems

Authors

  • Helena Bohman Malmö University K2 The Swedish knowledge centre for public transport
  • Désirée Nilsson Malmö University K2 The Swedish knowledge centre for public transport

DOI:

https://doi.org/10.5198/jtlu.2021.1664

Keywords:

hedonic price model, network effect, centrality, labour market accessibility, commuter rail

Abstract

Property prices are known to be higher in places with high accessibility, such as in proximity to train stations and especially to commuter rail, than in places without this access. This study provides a better understanding of how regional accessibility, through the structure of railway networks, can influence local agglomeration economies by providing accessibility to large labor markets. Previous literature has shown a positive impact of proximity to railway stations on housing prices, and our study adds to the literature by analyzing the impact of network structure. We argue that public transport systems can support the benefits of city networks in line with Alonso’s concept of borrowed sizes (1973). Using network theory to measure accessibility provided by the network, we show that stations that provide accessibility to large labor markets across the region are perceived as more attractive by households. Cities in proximity to other cities are strengthened through their public transport links, which allow agglomeration benefits to be exploited by residents.

Author Biographies

Helena Bohman, Malmö University K2 The Swedish knowledge centre for public transport

Department of Urban studies Assistant Professor

Désirée Nilsson, Malmö University K2 The Swedish knowledge centre for public transport

Department of Urban studies Assistant Professor

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Published

2021-01-18

How to Cite

Bohman, H., & Nilsson, D. (2021). Borrowed sizes: A hedonic price approach to the value of network structure in public transport systems. Journal of Transport and Land Use, 14(1), 87–103. https://doi.org/10.5198/jtlu.2021.1664

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