Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain
This paper analyses the house price diffusion effect in an economic-mixed region where the costal amenities strongly attracts second home and temporal residents while the main region’s city is an administrative centre in alicante province, Spain. The region is called Vega Baja country with 2 well kn...
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Vilnius Gediminas Technical University
2017-02-01
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doaj-9db3d89b55ff4cebb540a966df7808ca2021-07-02T01:44:41ZengVilnius Gediminas Technical UniversityInternational Journal of Strategic Property Management1648-715X1648-91792017-02-0121110.3846/1648715X.2016.1241192Ripple effect on housing prices. Evidence from tourist markets in Alicante, SpainPaloma Taltavull de La Paz0Enrique López1Francisco Juárez2Department of Applied Economics, University of Alicante, Campus de San Vicente del Raspeig s/n, 03080 Alicante, SpainDepartment of Applied Economics, University of Alicante, Campus de San Vicente del Raspeig s/n, 03080 Alicante, SpainDepartment of Applied Economics, University of Alicante, Campus de San Vicente del Raspeig s/n, 03080 Alicante, SpainThis paper analyses the house price diffusion effect in an economic-mixed region where the costal amenities strongly attracts second home and temporal residents while the main region’s city is an administrative centre in alicante province, Spain. The region is called Vega Baja country with 2 well known foreign-Europeans destination areas are located (Orihuela costa and Torrevieja). Using geo-referenced data, the paper explores the ripple effect on house prices between the coastal and inland areas, versus Orihuela capital. To control by heterogeneity and spatial autocorrelation, the model estimates housing prices controlled by quality including 33 house characteristics and spatial autocorrelation applying an SAR-hedonic based model which is estimated yearly for the period 2007–2012. Once controlled by quality, the estimated prices are used to seek 3 evidences of ripple effect: with spatial contiguity (spatial diffusion in the short distance), without special contiguity (long distance) and constant relative prices ratio, using Lagrange Multiplier test and Moran’s I, and Spatially Weighted Two Stage Least Squares (SW2SLS) including spatial lag and errors in the model. Results show the existence of spatial autocorrelation patterns in a well-defined local clusters and highlight evidence of ripple effect between Orihuela city and the coastal and inland areas but with lagged effect. First published online: 08 Dec 2016 https://journals.vgtu.lt/index.php/IJSPM/article/view/1856Housing pricesRipple effectTourist areasSpain |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Paloma Taltavull de La Paz Enrique López Francisco Juárez |
spellingShingle |
Paloma Taltavull de La Paz Enrique López Francisco Juárez Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain International Journal of Strategic Property Management Housing prices Ripple effect Tourist areas Spain |
author_facet |
Paloma Taltavull de La Paz Enrique López Francisco Juárez |
author_sort |
Paloma Taltavull de La Paz |
title |
Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain |
title_short |
Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain |
title_full |
Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain |
title_fullStr |
Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain |
title_full_unstemmed |
Ripple effect on housing prices. Evidence from tourist markets in Alicante, Spain |
title_sort |
ripple effect on housing prices. evidence from tourist markets in alicante, spain |
publisher |
Vilnius Gediminas Technical University |
series |
International Journal of Strategic Property Management |
issn |
1648-715X 1648-9179 |
publishDate |
2017-02-01 |
description |
This paper analyses the house price diffusion effect in an economic-mixed region where the costal amenities strongly attracts second home and temporal residents while the main region’s city is an administrative centre in alicante province, Spain. The region is called Vega Baja country with 2 well known foreign-Europeans destination areas are located (Orihuela costa and Torrevieja). Using geo-referenced data, the paper explores the ripple effect on house prices between the coastal and inland areas, versus Orihuela capital. To control by heterogeneity and spatial autocorrelation, the model estimates housing prices controlled by quality including 33 house characteristics and spatial autocorrelation applying an SAR-hedonic based model which is estimated yearly for the period 2007–2012. Once controlled by quality, the estimated prices are used to seek 3 evidences of ripple effect: with spatial contiguity (spatial diffusion in the short distance), without special contiguity (long distance) and constant relative prices ratio, using Lagrange Multiplier test and Moran’s I, and Spatially Weighted Two Stage Least Squares (SW2SLS) including spatial lag and errors in the model. Results show the existence of spatial autocorrelation patterns in a well-defined local clusters and highlight evidence of ripple effect between Orihuela city and the coastal and inland areas but with lagged effect.
First published online: 08 Dec 2016
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topic |
Housing prices Ripple effect Tourist areas Spain |
url |
https://journals.vgtu.lt/index.php/IJSPM/article/view/1856 |
work_keys_str_mv |
AT palomataltavulldelapaz rippleeffectonhousingpricesevidencefromtouristmarketsinalicantespain AT enriquelopez rippleeffectonhousingpricesevidencefromtouristmarketsinalicantespain AT franciscojuarez rippleeffectonhousingpricesevidencefromtouristmarketsinalicantespain |
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