How much do users value a network expansion? Evidence from the public transit system in Singapore

The authors estimate the network effects of a public transit system by examining the impact of its expansion on housing prices. The authors' results show that a major expansion of Singapore's Mass Rapid Transit (MRT) system increased the price of apartments within 0.5 km of a pre-expansion station by 1.8% relative to apartments that were further away from a station. Evaluated at the mean housing price, the expansion increased the value of pre-connected apartments by at least S$455 million in aggregate, which is equivalent to 9% of the estimated S$5 billion cost of the expansion.

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  • English

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  • Accession Number: 01677947
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 25 2018 3:05PM