Abstract
—We study the economic effects of place-based policies in the housing market, by investigating the effects of a place-based program on prices of surrounding owner-occupied properties. The program improved the quality of public housing in 83 impoverished neighborhoods through-out the Netherlands. We combine a first-difference approach with a fuzzy regression-discontinuity design to address the fundamental issue that these neighborhoods are endogenously treated. Improvements in public housing induced surrounding housing prices to increase by 3.5%. The program’s external benefits are sizable and at least half of the value of investments in public housing.
Original language | English |
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Pages (from-to) | 400-414 |
Number of pages | 15 |
Journal | Review of Economics and Statistics |
Volume | 101 |
Issue number | 3 |
Early online date | 28 Jun 2019 |
DOIs | |
Publication status | Published - Jul 2019 |