The costs of urban expansion: An approach based on a hedonic price model in the Metropolitan Area of the Valley of Mexico

The Mexico City Metropolitan Area (MCMA) has experienced an expansion that is not proportional to population growth. Among other forms of settlement, the construction of large, peripheral housing complexes promotes this expansion, imposing individual and social costs. This paper reviews the characteristics of urban expansion in the MCMA and production conditions of peripheral social housing, individuals' loss of income due to the distance from the workplace and, through a hedonic price model, considers the role played by this distance in the price differential between peripheral and intra-urban housing.