Graduation Year

2015

Date of Submission

12-2014

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Eric Hughson

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Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© 2014 Valerie Ho

Abstract

The issue of the rising Claremont water rates has been a heated topic of debate over the last couple of years. This study is part of a larger body of literature that seeks to determine the extent to which a location-specific amenity or dis-amenity is capitalized into housing values, and specifically aims to examine the relationship between water rates and home prices in Claremont. To do this, it uses houses in La Verne, where water rates have not been rising as rapidly, as a control group. Specifically, the regression model looks at whether the differences in the water bills between Claremont and La Verne are associated with the differences in the house prices between Claremont and La Verne. In doing so, it also provides an estimate of the price discount faced by houses in Claremont due to the water rate.

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