Value Capture of Public Infrastructure

Director of Civic Analytics at the NYU Marron Institute, Constantine Kontokosta, collaborated with Arpit Gupta, NYU Stern School of Business, and Stijn Van Nieuwerburgh, Columbia Business School, to analyze the impact of the Second Avenue Q-train in a paper titled Take the Q Train: Value Capture of Public Infrastructure.

We analyze the impact of the Second Avenue Subway (Q-train) construction on local real estate prices, which capitalize the benefits of transit spillovers. We find evidence of higher real estate prices in the vicinity of areas served by the new Q-train, relative to other areas in Manhattan’s Upper East Side. Only 30% of the private value reacted by the subway leads is captured through property tax increases can help close the funding gap.

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