Econ 4093 -Assignment 2
Total 10 points
The Hangzhou-FuZhou-Shenzhen high-speed line (HFSL) was opened on Dec 28th, 2013. Shenzhen North Station is the terminal station of the HFSL on the Shenzhen end. The next station is Pingshan Station, located in the eastern suburban district of Shenzhen. The opening of HFSL tremendously enhanced inter-city population mobility. Figure 1 and 2 show the two HSR lines and the location of the HSR stations in Shenzhen. Shenzhen North Station is a transportation hub connecting two HSR lines to the local metro network. In contrast, Pingshan Station are located in the far suburban area without connectivity to the local metro system.
Figure 1: HSR line and stations in Shenzhen
Figure 2: The spatial distribution of transactions and metro stations
This assignment asks you to estimate the causal impact of HFSL to the housing price in Shenzhen from 2012 to 2015.
1: Estimating the effect of Shenzhen North station to the housing price nearby. More specifically, define the treatment group as housing estates located within 2 km of Shenzhen North Station. The control group is housing estates located from 2-4 km of Shenzhen North Station.
Using DD regression, how did the Shenzhen North Station generate impact to the housing price nearby? Does the result make sense? Please explain your findings. (2 marks).
2: Do the same thing to estimate the effect of PingShan station to housing price nearby and explain your findings. Again, the treatment group is defined for housing estates located within 2 km of Pingshan station, and the control group is units located from 2-4 km of Pingshan station. (2 marks).
3: The opening of HFSL generates impact on housing price near metro stations. Please answer the following questions by running DD regressions. Please define the treatment group as the housing estates located within 1- km of metro stations, and the control group is the housing estates located from 1-2 km of metro stations. (6 points in total)
a): What is the overall impact of HFSL to housing price near metro stations? Please interpret your findings. (2 points)
b): What will be the temporal effects of HFSL to housing price near metro stations? More specifically, please run DD regressions to examine the impact within 3 months, 6 months, 12 months and 18 months of the HFSL opening. (2 points)
c): The variable HSR_Metro_Time captures the metro commuting time from the Shenzhen North Station to different metro stations. We concern that metro stations closer and far away to Shenzhen North Station could have different impact on housing price. Please run six DD regressions to examine the housing price changes near metro stations which were located within 5-15 minutes, 15-25 minutes, 25-35 minutes, 35-45 minutes, 45-55 minutes, and beyond 55 minutes commuting time from the Shenzhen-North Stations. Please interpret your findings. (2 points).