Broek, J.D. van den (2018) The selling process of houses around the Groningen gas field: A Two-Stage Least Squares (2SLS) regression analysis of the influence of earthquake risk on the time-on-the-market (TOM). Master thesis.
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Abstract
This Master’s thesis focuses on the influence of earthquake risk on the time-on-the-market (TOM) of house sales around the Groningen gas field. A Difference-In-Difference (DID) technique and a variable accumulating the Peak Ground Velocity (PGV) at the house location of all previous earthquakes are used to measure earthquake risk. Employing NVM data on housing transactions in the Northern Netherlands from 2003 until 2014, the result of both approaches is a 2SLS model to include the simultaneity between selling price and TOM. The DID model shows that TOM in the risk area is 6.2% higher after the 2012 Huizinge earthquake compared to similar regions, while it used to be 8.7% lower. The PGV model indicates that an increase of 10% in PGV causes a rise of 0.5% in TOM. Earthquakes start to have an impact after a PGV of 0.7 m/s. This thesis shows that earthquake risk increases TOM.
| Item Type: | Thesis (Master) |
|---|---|
| Degree programme: | Spatial Sciences (Research) |
| Supervisor: | Kam, G.R.W. de and Elhorst, J.P. |
| Date Deposited: | 23 Apr 2020 05:41 |
| Last Modified: | 23 Apr 2020 05:41 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/2638 |
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