Hilber, Christian A. L. (2007): New Housing Supply and the Dilution of Social Capital.
Download (295Kb) | Preview
This paper examines the role of local housing supply conditions for social capital investment. Using an instrumental variables approach and data from the Social Capital Community Benchmark Survey, it is documented that the positive link between homeownership and individual social capital investment is largely confined to more built-up neighborhoods (with more inelastic supply of new housing). The empirical findings provide support for the proposition that in these localities house price capitalization provides additional incentives for homeowners to invest in social capital. The findings are also largely consistent with the proposition that built-up neighborhoods provide protection from inflows of newcomers that could upset a mutually beneficial equilibrium involving reciprocal cooperation. However, the results do not appear to be driven by selection based on inherent differences in social aptitudes or by Tiebout sorting.
|Item Type:||MPRA Paper|
|Original Title:||New Housing Supply and the Dilution of Social Capital|
|English Title:||New Housing Supply and the Dilution of Social Capital|
|Keywords:||House price capitalization; social capital; homeownership; land and housing supply; reciprocal cooperation|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice; Clubs; Committees; Associations
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Production Analysis, and Firm Location > R31 - Housing Supply and Markets
|Depositing User:||Christian A. L. Hilber|
|Date Deposited:||18. Nov 2008 05:24|
|Last Modified:||16. Feb 2013 06:41|
Ai, C., Norton, E.C., 2003. Interaction terms in logit and probit models, Economics Letters 80(1), 123-129.
Alesina, A., LaFerrara, E., 2000. Participation in heterogeneous communities, Quarterly Journal of Economics 115(3), 847-904.
Angrist, J.D., Imbens, G.W., Krueger, A.B., 1999. Jackknife instrumental variables estimation, Journal of Applied Econometrics 14(1), 57-67.
Brasington, D.M. 2002. Edge versus center: finding common ground in the capitalization debate, Journal of Urban Economics 52(3), 524-541.
Brueckner, J.K., Joo, M.-S., 1991. Voting with capitalization, Regional Science and Urban Economics 21(3), 453-467.
Brueckner, J.K., Largey, A.G., 2008. Social interaction and urban sprawl, Journal of Urban Economics 64(1), 18-34.
Capozza, D.R., Helsley, R.W., 1990. The stochastic city, Journal of Urban Economics 28(2), 187-203.
Capozza, D.R., Li, Y., 1994. The intensity and timing of investment: The case of land, American Economic Review 84(4), 889-904.
Cornes, R., 1993. Dyke maintenance and other stories: some neglected types of public goods, Quarterly Journal of Economics 108, 259-271.
Dehring, C.A., Depken II., C.A., Ward, M.R., 2008. A direct test of the homevoter hypothesis, Journal of Urban Economics 64(1), 155-170.
DiPasquale, D., Glaeser, E.L., 1999. Incentives and social capital: Are homeowners better citizens?, Journal of Urban Economics 45(2), 354-384.
Durlauf, S.N., 2002. On the empirics of social capital, Economic Journal 112(483), F459-F479.
Durlauf, S.N., Fafchamps, M., 2004. Social capital, NBER Working Paper 10485, NBER, Cambridge, MA, May.
Fischel, W.A., 2001. Homevoters, municipal corporate governance, and the benefit view of the property tax, National Tax Journal 54(1), 157-173.
Fischel, W.A., 2004. An economic history of zoning and a cure for its exclusionary effects, Urban Studies 41(2), 317-340.
Glaeser, E.L., 1996. The incentive effects of property taxes on local governments, Public Choice 89(1-2), 93-111.
Glaeser, E.L., Gottlieb, J.D., 2006. Urban resurgence and the consumer city, Urban Studies 43(8), 1275-1299.
Glaeser, E.L., Gyourko J., Saks, R.E., 2005. Why is Manhattan so expensive? Regulation and the rise in house prices, Journal of Law and Economics 48(2), 331-369.
Glaeser, E.L., Laibson, D., Sacerdote, B., 2002. An economic approach to social capital, Economic Journal 112(483), F437-F458.
Haurin, D.R., Gill, H.L., 2002. The impact of transaction costs and the expected length of stay on homeownership, Journal of Urban Economics 51(3), 563-584.
Helsley, R.W., Strange, W.C., 2004. Knowledge barter in cities, Journal of Urban Economics 56(2), 327-345.
Hilber, C.A.L., 2007. New housing supply and the dilution of social capital, London School of Economics, Research Papers in Environmental and Spatial Analysis, No. 123, August.
Hilber, C.A.L., Mayer, C.J., 2008. Why do households without children support local public schools? Linking house price capitalization to school spending, forthcoming in Journal of Urban Economics.
Hilber, C.A.L., Robert-Nicoud, F., 2006. Owners of developed land versus owners of undeveloped land: Why land use is more constrained in the Bay Area than in Pittsburgh, CEP Working Paper 760, Centre for Economic Performance, London, November.
Hoff, K., Sen, A., 2005. Homeownership, community interactions, and segregation, American Economic Review, 95(4), 1167-1189.
Knack, S., Keefer, P., 1997. Does social capital have an economic payoff? A cross-country investigation, Quarterly Journal of Economics 112(4), 1251-1288.
Manski, C.F., 2000. Economic analysis of social interactions, Journal of Economic Perspectives 14(3), 115-136.
McDonald, J.F., McMillen, D.P., 2000. Employment subcenters and subsequent real estate development in suburban Chicago, Journal of Urban Economics 48(1), 135-157.
Novy-Marx, R., 2005. An equilibrium model of investment under uncertainty, mimeo, University of Chicago, Graduate School of Business, February.
Oates, W.E., Schwab, R., 1988. Economic competition among jurisdictions: Efficiency enhancing or distortion inducing?, Journal of Public Economics 35(3), 333-354.
Oates, W.E., Schwab, R., 1996. The theory of regulatory federalism: The case of environmental management, in: Oates, W.E. (Ed.), The Economics of Environmental Regulation, Edward Elgar, Aldershot, UK, pp. 319-331.
Putnam, R., 1995. Bowling alone: America’s declining social capital, Journal of Democracy 6(1), 65-78.
Putnam, R., Leonardi R., Nanetti, R., 1993. Making democracy work: Civic traditions in modern Italy, Princeton University Press, Princeton.
Rangel, A., 2005. How to protect future generations using tax-base restrictions, American Economic Review 95(1), 314-346.
Roper Center for Public Opinion Research, 2001. USMISC2000-SOCCAP. Social Capital Benchmark Survey, 2000 Documentation, Roper Center (Univ. of Connecticut), Storrs.
Rossi, P., Weber E., 1996. The social benefits of homeownership: Empirical evidence from national surveys, Housing Policy Debate 7, 1-35.
Rudel, T.K., 1989. Situations and Strategies in American Land-Use Planning, Cambridge University Press, Cambridge, England.
Saiz, A., 2008. On local housing supply elasticity, mimeo, University of Pennsylvania.
Sandler, T., 1998. Global and regional public goods: A prognosis for collective action, Fiscal Studies 19(3), 221-247.
Sonstelie, J.C., Portney, P.R., 1978. Profit maximizing communities and the theory of local public expenditures, Journal of Urban Economics 5(2), 263-277.
Staiger, D., Stock, J.H., 1997. Instrumental variables regression with weak instruments, Econometrica 65(3), 557-586.
Stock, J.H., Wright J.H., Yogo, M., 2002. A survey of weak instruments and weak identification in Generalized Methods of Moments, Journal of Business & Economic Statistics 20(4), 518-529.
Stock, J.H., Yogo, M., 2005. Testing for weak instruments in linear IV regression, in Andrews, D.W.K., Stock, J.H. (Eds.). Identification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg. Cambridge University Press, Cambridge, pp. 80-108.
Tiebout, C.M., 1956. A pure theory of local expenditures, Journal of Political Economy 64(5), 416-424.
Titman, S., 1985. Urban land prices under uncertainty, American Economic Review 75(3), 505-514.
Wildasin, D.E., 1979. Local public goods, property values, and local public choice, Journal of Urban Economics 6(4), 521-534.
Wooldridge, J.M., 2002. Econometric Analysis of Cross Section and Panel Data, MIT Press, Cambridge.