Searching for Goldilocks : The Distance-Based Capitalization Effects of Local Public Services

This paper empirically models the effect of distance on residential property values of three different types of services, fire, police, and emergency medical services. Interesting economic tradeoffs emerge as service station proximity provides both amenity and disamenity effects. Using an extensive database of home sales from the state of Florida along with two different measures of distance, this study provides evidence of non-linear capitalization effects on local housing values. A difference-in-difference model utilizing new facility construction provides corroborating evidence of these findings