Wal-Mart Openings and Housing Prices



Introduction3

Brief Literature Review3

Research Data5

Research Design6

Empirical Results8

Summary Statistics8

Regression Results9

Conclusion11

References13

Wal-Mart Openings and Housing Prices

Introduction

The core idea of this research article is to identify the effect of Wal-Mart opening in a specific area and its effects on the housing prices located nearby. Most of the times, the opening of a Wal-Mart are opposed by the residents nearby. The assumption behind such resistance is the idea that the Wal-Mart will increase the real state prices of housing in that area. The article will describe the data collection and the research strategy and the results of the study. On the basis of study, we will briefly discuss the Wal-Mart effect on the housing prices. This study will help the reader to understand the effect of Wal-Mart openings on the housing prices in United States.

Brief Literature Review

The objective of this study contributes to one of the mysteries in United States. On a large scale, the citizens of united sates think that the opening of Wal-Mart near their house will increase their housing prices. The strength of this hypothetical assumption was studied by two researchers Jeri and Devin in 2012. There are only few studies that can verify the significance in the relation among housing prices and Wal-Mart

The Wal-Mart network is one of the fastest growing businesses in the United States. The Wal-Mart stores are developing exponentially on the land of United states. The fact is that in current situations, they are the most beneficial retailers around the world. A Wal-Mart in itself is one of the profitable businesses with less risk around the globe. From the investor's perspective, the Wal-Mart business requires a huge amount of capital, but the future profits are guaranteed with less financial risk. Therefore, the reason behind the exponential growth of Wal-Mart business is the large profits and less risk (Pope and Pope, 2012).

The economic role of the Wal-Mart opening is very supportive and excellent for the overall economy of United States. Currently in United States, the Wal-Mart owners are the largest employers of the country. The beneficial sides of the Wal-Mart openings are supportive from the economic perspective. Because of their huge contribution in the economy of United States, the superior authorities and government departments always support and wish the exponential growth of Wal-Mart on the lands of United States. The support for the Wal-Mart stores is not only from the government of the United States but the residents of the country also its presence in their area. The reason being the public support is that they provide a variety of product ranging from low prices having moderate quality to the high prices along with the highest quality of that product. They provide their customers a wide range of choice in the same product. They always sale only those products that are quality approved and assured by the state departments. To maintain the quality and freshness of their product the entire Wal-Mart store is maintained in an efficient manner that attracts its customers ...