New scholarly paper presents evidence of housing market externalities arising from jet related accident potential zones (APZs)

Professor Walter D'Lima has a new scholarly paper that presents novel evidence of housing market externalities arising from jet related accident potential zones (APZs). The study uses housing transaction data near military bases and examines capitalization of potential jet accident risk in house prices. His research finds that properties in APZs transact at lower prices. Additionally, the externality effect is much more pronounced following a jet crash in the area and mitigates over passage of time. Overall, his work highlights the role of recency in real estate markets as participants differentially account for relevant information. Read paper here