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The pricing of assets when there are spatial considerations is a very desired and complex matter. Some recent attempts tries to see how the pricing equation is influenced when one
takes into consideration spatial externalities. This paper provide a critical analysis of the model put forth by Rossi-Hansberg, Sarte and Owens (JPE,2010), from now on RSO, which model how residential externalities impact house pricing by assuming a functional form that has a exponential decay. Their model is very insightfull and rigorous. Nevertheless
we claim that their results rely heavily on the calibration exercise: they found that the land value increases when there is a revitalization program in some specific location and
the value of land for neighborhood decreases monotonically and with a very intuitive unique change of the concavity of the pricing equation. We show that both monotonicity and uniqueness of the number of inflexion points is not robust to model specification.
Parameters values matter a lot in their model setting. In particular we discuss the influence of the reservation utility (

House Pricing; Spatial Externality; Calibration