# A Data-Driven Analysis on the Impact of High-Speed Rails on Land Prices in Taiwan
## 3 Application of System Dynamics  
This section provides an overview on how various elements of stocks, such as \"accessibility\", \"economy\", and \"infrastructure\" developments and \"social\" settings, affect land prices and proposes flows of the constituents to and out from these stocks. By capturing interactions and, consequently, the feedback loops, a causal loop diagram reveals the dynamic structure of a system, where each of these components exert a positive or negative effect on the land prices directly or indirectly. [PERSON] et al. [27] defined accessibility as the ease at which transport systems allow activities or destinations to be reached by individuals. According to land theory, land values reflect higher accessibility gradients. Locations with better \"accessibility\" tend to have higher land values [28; 29]. It is postulated that improved accessibility arising from HSR, supported by high \"road density\", can increase land values through a reduction in traveling time and cost. Property prices increase with higher demand for accessible housing locations, as more people are willing to pay for the benefits of convenience [10; 11]. Meanwhile, it can be counterargued that the noise pollution brought along by the road traffic adversely affect property prices [12; 13; 15]. Improving accessibility also effectively reduces transportation costs and brings manufacturing activities closer together, leading to concentrated locations of production that promote the exploitation of economies of scale. Consequently, such industrial development increases employment in the area and the attractiveness of the neighborhood. The contribution of a new HSR station is felt even stronger in the absence of an airport in proximity, not forgetting the noise from an airport erodes property prices [14]. The \"unemployment rate\" is likely to move in the opposite direction to property prices [30]. A rise in unemployment reduces \"consumer prices\" and property prices as consumption and demand for housing fall [31]. The consumer price index (CPI), which is a weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, is a generally accepted proxy to inflation. Housing becomes less affordable for the general populace when the CPI increases and the real-estate-price-to-income ratio increases. The relationship between income and land prices becomes even more significant in regions with higher rates of unemployment, because demand for housing becomes more price elastic [32]. On the other hand, [PERSON] et al. [33] suggested that if homeowners are to use home equity as collateral to finance idiosyncratic consumption opportunities, such financial innovation that raises the acceptability of homes as collateral raises house prices and reduces unemployment. Economic growth forms the foundation for robust property prices and accounts for appreciation in prices, suggesting a close link between the property market and the economy [34]. Economic development leads to higher land prices with the increase demand for land used in \"commercial activities\" such as retailing, accommodation, and other exhibition or conference facilities. While the \"number of companies\" in an area influences the amount of \"commercial activities\", \"locational accessibility\", the presence of a \"free trade zone\", \"exchange rates\", and the degree of \"internet penetration\" are some elements that attract the establishments of companies. Florida [35] asserted that the most connected countries tend to be highly urbanized. The opening of HSR stations increases the physical connectivity of previously remote cities. Favorable exchange rates reduce the cost of imports. With investors being drawn to invest in these smaller cities, the number of businesses consequently increases [36]. \"Internet penetration\" increases communication connectivity and facilitates commercial activities in an area [37]. In addition, many stations on the Taiwan HSR line serve as gateways to tourist attractions in Taiwan.