2014
DOI: 10.1111/sjoe.12090
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Do Urban Neighborhoods Benefit from Homeowners? Evidence from Housing Prices

Abstract: Homeownership is heavily subsidized in most countries. The adverse effects of this policy on economic efficiency and income distribution are well documented in the economics literature. The main argument in favor of subsidizing homeownership is that it creates positive externalities that offset these adverse effects. In this paper, we test whether homeowners create positive externalities that capitalize into housing prices in multi‐storey buildings. Using semi‐parametric hedonic regressions with and without in… Show more

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Cited by 6 publications
(3 citation statements)
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References 75 publications
(170 reference statements)
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“…Further, we lack a natural experiment which would provide exogenous variation in sorority membership. Therefore, we bound our IV results using the procedure suggested by Nevo and Rosen (), and subsequently used by Reinhold and Woutersen () and Kortelainen and Saarimaa ().…”
Section: Econometric Methods: Instrumental Variablesmentioning
confidence: 99%
“…Further, we lack a natural experiment which would provide exogenous variation in sorority membership. Therefore, we bound our IV results using the procedure suggested by Nevo and Rosen (), and subsequently used by Reinhold and Woutersen () and Kortelainen and Saarimaa ().…”
Section: Econometric Methods: Instrumental Variablesmentioning
confidence: 99%
“…In addition, their empirical results support the argument that residents highly value land-use diversity. Further, some studies have verified that multistory buildings within the same neighborhood and high access to retail stores are positively associated with housing prices (Jang and Kang, 2015;Kortelainen and Saarimaa, 2015;Yang et al, 2016).…”
Section: Literature Reviewmentioning
confidence: 98%
“…As such behaviour should help maintain property values for other residents in the neighbourhood as well, it can be argued that a higher proportion of homeownership in an area imposes such positive externalities on the whole neighbourhood. However, it is important to take into consideration the fact that recent empirical research from Finland does not find evidence for such positive externalities that are capitalised into housing prices to a notable extent (Kortelainen and Saarimaa, 2015;Kurvinen et al, 2015). For a more detailed discussion on the taxation of housing, see Määttänen (2009).…”
Section: Why Is Owner-occupied Housing So Popular and Is This A Probmentioning
confidence: 99%