Open Space at the Rural-Urban Fringe: A Joint Spatial Hedonic Model of Developed and Undeveloped Land Values

Abstract

We examine the impacts of different open space amenities on sales prices of developed and undeveloped land in two time periods ten years apart in a rapidly urbanizing county in central Ohio. Buffers within 0.25 and 0.5 miles are created that include percentages of agricultural, residential, park and golf course uses around each land sale and are used as explanatory variables. We contribute to the literature by estimating a unified model that accounts for spatial heterogeneity as well as for cross-correlations in developed and undeveloped land sales. Our findings suggest interactions between the land markets examined are complex and dynamic.