This repository provides the coding for the research project "Housing Prices, Aiport Noise and an Unforseeable Event of Silence".
Authors: Dr. Philipp Breidenbach and Dr. Patrick Thiel
Code author: Dr. Patrick Thiel
To evaluate the causal impact of noise exposure on housing prices, we exploit a sudden and massive reduction in flight traffic that occurred with the onset of the COVID-19 measures in Germany. Comparing locations differently exposed to pre-pandemic noise with a difference-in-difference approach, we detect a 2.4% increase in prices for apartments that experienced a noise reduction. Disentangling temporal dynamics, we find a peak effect in mid-2021 (up to 6%), with the effect persisting until 2023, albeit at a lower magnitude. In contrast to most evaluations showing that the erection of a disamenity affects prices negatively, we show that lifting the burden enables neighborhoods to catch up again immediately. The immediate catch-up contradicts a stickiness of housing prices regarding (temporal) local factors. The temporal pattern shows a clear peak of the effects during the pandemic, which potentially hints at information asymmetries since buyers may not know the non-pandemic noise level during the pandemic.
Keywords: COVID pandemic, aircraft noise, housing prices, hedonic function
JEL Classification: O18, Q53
Breidenbach, Philipp; Thiel, Patrick (2024) : Housing Prices, Airport Noise and an Unforeseeable Event of Silence, Journal of Housing Economics, Vol. 66, https://doi.org/10.1016/j.jhe.2024.102026.
Breidenbach, Philipp; Thiel, Patrick (2023) : Housing Prices, Airport Noise and an Unforeseeable Event of Silence, Ruhr Economic Papers, No. 1020, ISBN 978-3-96973-186-4, RWI - Leibniz-Institut für Wirtschaftsforschung, Essen, https://doi.org/10.4419/96973186. https://www.econstor.eu/bitstream/10419/270964/1/REP-23-1020.pdf
https://www.sciencedirect.com/science/article/pii/S1051137724000457
- Release v2.0:
