Economists have long argued for the existence of a causal link between public spending on infrastructure and land values. Using data collected by New York City’s Finance Department, this study aims at examining this relationship.
There are many factors involved in the valuation of land, and infrastructure plays an important role in this process. For the purpose of this study, we have identified two types of infrastructure: hard infrastructure and soft infrastructure.
Hard infrastructure includes physical features such as roads, bridges, subways, tunnels, parks etc.
Soft infrastructure features security (e.g. police stations), cultural and recreational centers, schools, fire departments etc.