The Review of Economics and Statistics Vol. 101 No. 3 2019

Place-Based Policies and the Housing Market

Hans Koster¹; Jos van Ommeren²

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

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 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

Issue

3

Pages

400-414

Language

en

Sources

openalex crossref

Cite

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