A Spatial Econometric Analysis of the Aerotropolis Atlanta.

This article focuses on the spatiotemporal impact of the Aerotropolis Atlanta project—a public-private partnership initiated in 2014 to revitalize the area around Hartsfield-Jackson Atlanta International Airport—on residential property values. Using a difference-in-differences (DID) hedonic pricing model with a Spatial Error Model (SEM) to control for spatial autocorrelation, the study analyzes townhome sales within one mile of the Aerotropolis boundary before and after the announcement. The findings indicate a statistically significant positive externality effect, with properties inside the Aerotropolis boundary appreciating more in value relative to similar properties outside the boundary during the post-announcement period, despite potential negative externalities from airport noise and pollution. Robustness checks, including propensity score matching and Kitagawa-Oaxaca-Blinder decomposition, support the conclusion that the Aerotropolis initiative contributed to increased housing demand and price appreciation within the designated area.