I study the determinants of housing prices in the Fargo, ND-Moorhead, MN metropolitan area. I find no difference in the price of houses across state line even though Minnesota has much higher income taxes. In addition, I find support for the hypothesis that the prices of neighboring houses have a significant impact on the price of a house.
"Real Estate Prices: City Premiums and Neighborhood Effects,"
Undergraduate Economic Review: Vol. 1
, Article 9.
Available at: http://digitalcommons.iwu.edu/uer/vol1/iss1/9