HOUSE PRICES DURING SITING DECISION STAGES - THE CASE OF AN INCINERATOR FROM RUMOR THROUGH OPERATION

The impact of an undesirable land use on house prices is not constant over time. Previous proximity studies which employed only discrete cha nges in information, such as an EPA Superfund site announcement, ignor ed potentially important phases of the adjustment process, This study explicitly measures how the effects of an undesirable land use evolve over the siting process and life of the disamenity. Some price respons e to rumors of a facility is indicated, and the evidence that prices r espond at groundbreaking, before operation, is strong, The distance pr emium persists at least 7 years after the facility begins operations. (C) 1995 Academic Press, Inc.