Analysis On The Method Of Estimating The Value Of Local Public Facilities Based On Spatial Correlation

Research and analysis of the value of local public facilities through data of housing market is not only in the field of classical issue, but also the leading edge of local economics. There is spatial correlation of these data, which may give a bias to the result. Research on local public facilities is little using spatial econometrics theory and method. There is great theoretical value and practical significance to explore in this field. The study of local public facilities and benefit from the supply of housing and land through the market pricing of public facilities is scarce in the study of local economics and public finance. There is ground-breaking significance in the research method in this paper.Base on revealed preference method and GIS technology, using the housing and land marcket transaction data of Beijing, in this paper I creat a spatial database, and a Hedonic model to estimate the value of several local public facilities. The results show that households'willingness-to-pay for living in the vicinity of subway stops, bus stops and large parks are 17.1% 12.4% and 6.4% of their corresponding housing values. And the neglect of the spatial correlation will underrate the grads of the price, and overrate the values of local public facilities. Part of the premium coursed by the distance to the center of the city is incorrectly calculated to the premium of local public facilities.In controlling the impact of the spatial uneven, the willingness-to-pay drop to 16.8percent, 11.9percent and 6.2 percent. In controlling the impact of the spatial autocorrelation, the willingness-to-pay drop to 14.2percent, 10.9percent and 5.3percent.However, the research on land marcket shows that such kind of value has not been fully capitalized to the price of land.Although the spatial correlation is significant, in controlling the impact of the spatial uneven and the spatial autocorrelation, such effects are not significant in the land market, which may indicate that the benefits from residents'wiliness-to-pay for local public goods are captured by developers, without being further transferred to the local governments who are responsible for building and maintaining those public goods. The proposed property tax takes the value of the property as the tax base, so that the collection of information from residents can be directly transfered to the local government. It will provide a more effective incentive motivation to the government to provide public facilities, and help to determine the supply reasonable time, place and scale.