Place-Based Policies and the Housing Market

Hans Koster; Jos van Ommeren

doi:10.1162/rest_a_00779

Place-Based Policies and the Housing Market

¹ Vrije Universiteit Amsterdam, National Research University–Higher School of Economics, Tinbergen Institute, Centre for Economic Performance at the London School of Economics, and CEPR · ² Vrije Universiteit Amsterdam and Tinbergen Institute

The Review of Economics and Statistics 2019 open access

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 throughout 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.

DOI: 10.1162/rest_a_00779
Volume: 101 (3)
Pages: 400-414
Language: en
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Sources: openalex crossref