Railway Commuting Costs and Housing Prices in Norway: an Empirical Analysis
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In this thesis we present a new variable measuring the generalised time costs of commuting to and from central municipalities in Norway, from 1997 to 2016. We use this variable to estimate the effect of changes in railway transportation quality on housing prices in the central municipalities. The empirical analysis is performed by using a fixed effects regression model based on data for five of Norway’s biggest municipalities; Oslo, Kristiansand, Stavanger, Bergen and Trondheim. We apply both static and dynamic models. We find that the generalised time costs of railway commuting has decreased in all municipalities between 1997 and 2016. Average commuting costs is highest in Bergen and lowest in Oslo. We find evidence of an inverse relationship between railway commuting quality to and from the central municipalities and housing prices within the municipalities. The short-run elasticity of housing prices with respect to changes in generalised time costs of commuting is about 0.2 per cent, while the long-run elasticity is about 0.4 per cent.