Alonso Meets HansenRent Determinants and Threshold Effects

  1. João Pedro Ferreira 1
  2. Nuno Baetas da Silva 2
  3. Esteban Fernández Vázquez 3
  1. 1 University of Florida
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    University of Florida

    Gainesville, Estados Unidos

    ROR https://ror.org/02y3ad647

    Geographic location of the organization University of Florida
  2. 2 Universidade de Coimbra
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    Universidade de Coimbra

    Coímbra, Portugal

    ROR https://ror.org/04z8k9a98

    Geographic location of the organization Universidade de Coimbra
  3. 3 Universidad de Oviedo
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    Universidad de Oviedo

    Oviedo, España

    ROR https://ror.org/006gksa02

    Geographic location of the organization Universidad de Oviedo
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Journal:
Revista portuguesa de estudos regionais

ISSN: 1645-586X

Year of publication: 2021

Issue: 57

Pages: 7-22

Type: Article

DOI: 10.59072/RPER.VI57.138 DIALNET GOOGLE SCHOLAR

More publications in: Revista portuguesa de estudos regionais

Abstract

The distance to the closest Central Business District has been, since Alonso theoretical contribution, one of the main variables used to explain housing prices. Recent studies made in the context of modern polycentric cities, with complex transit systems and heterogeneous social realities, have underline that other factors can also contribute to explain different housing prices. In this work, we evaluate if distance is still a factor that explains housing prices in the context of the Lisbon Metropolitan Area while also highlighting other explanatory factors. Also, combining Alonso’s proposal with Hansen econometric techniques, we show that in the Lisbon area there are different segments and as we step away from the center, the price constantly declines but at a slowest rate. The results also highlight how physical aspects of the dwelling, location variables or socio-economic characteristics of the neighborhood matter in the definition of housing prices. Finally, this work concludes by discussing how this method can be improved and contribute for better public policy, namely in terms of zoning or property taxes differentiation.

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