Capitalización Heterogénea de un Bien Semipúblico: El Metro de Santiago

In this work we estimate the degree of capitalization of the Santiago Subway (Metro) network on housing prices, analyzing price the differences among lines and counties. For this purpose, we combine hedonic price regressions with simple difference estimators. The results show that apartments located near the Metro stations have, on average, a larger value of 8.84%, 27.16% y 6.72% for Lines 1, 2, and 5 respectively. The degree of capitalization is not uniform within a county but depends on the distance to the subway station and the specific line providing the service.