Buying homes near unannounced MRT stations: What informed the decision?

IF SOMEONE buys a home near an MRT station two years before the station is announced, two explanations immediately come to mind: They knew something others did not, or they were simply better at connecting the dots.

A new National Bureau of Economic Research working paper has attracted attention for finding that Singapore civil servants bought private properties disproportionately close to future MRT stations one to two years before station locations were publicly announced.

The effect was strongest among mid-level officials and those working in planning agencies. The authors interpret this as evidence consistent with the misuse of privileged information.