CUHK Economics Project Exhibition 2020

Group 26: The Effects of Urban Rail Transit on the Market for Pre-Owned Houses: Evidence from 30 Cities in China

Q&A

A1: First-tier cities enjoy the largest value-added effects while second-tier cities enjoy the least.
A2: Higher bargaining power.
A3: Urban rail transit can bring significant economic benefits and increase the overall social welfare. However, households enjoy these advantages at the cost of rising real property prices and negative externalities (noise, crowded area, air pollution, etc.).