Zusammenfassung
In this paper we analyze the enormous variation in the price of building land across West German regions. We outline a theoretical model that ties a household's willingness to pay for building land to the inter-temporal value of employment. Using data for NUTS~3 regions the theoretically derived impact of labor market variables and other influences is investigated. We show that spatial dependence ...
Zusammenfassung
In this paper we analyze the enormous variation in the price of building land across West German regions. We outline a theoretical model that ties a household's willingness to pay for building land to the inter-temporal value of employment. Using data for NUTS~3 regions the theoretically derived impact of labor market variables and other influences is investigated. We show that spatial dependence through spatially lagged variables plays a crucial role. According to our findings, the variation in the price of building land can be explained reasonably well if one adequately takes into account the specific patterns of spatial interaction.
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