| | Taipei (all areas) | Central Taipei City | Rest of Taipei City | West Peripheral region |
|---|
| | (1) | (2) | (3) | (4) |
|---|
Spatial regressor | 0.177*** | 0.512*** | 0.155** | 0.285** |
(4.494) | (4.289) | ( 2.640) | ( 2.465) |
Land Price(lag1) | 0.786*** | 0.623*** | 0.864*** | 0.773*** |
( 26.124) | (6.323) | (11.584) | ( 10.236) |
Adj. R2 | 0.996 | 0.938 | 0.949 | 0.990 |
- Note: Robust t statistic is reported within the parentheses. ‘***’, ‘**’, and ‘*’ denote 1 percent, 5 percent and 10 percent significance levels. All models are estimated using two-stage IV procedure with area fixed effects and other local area controls such as income per capita, sprawl and construction cost index. For IV, the instruments include one period spatial lags of per capita income, sprawl, medical and the spatial regressor lagged one period. The sprawl is calculated as: Sprawl Index = (((S% − D%) ⊠ 100) + 1)) × 50. Where, D% = percentage of the total population in high-density area; S% = percentage of total population in low-density. Models (2), (3) and (4) show that the stability condition of (ρ + ϕ < 1) is violated i.e. (ρ + ϕ > 1).
