The Economics of Neighborhood - 1st Edition - ISBN: 9780126362503, 9781483220208

The Economics of Neighborhood

1st Edition

Studies in Urban Economics

Editors: David Segal
eBook ISBN: 9781483220208
Imprint: Academic Press
Published Date: 28th January 1979
Page Count: 312
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The Economics of Neighborhood integrates neighborhood into contemporary notions of the urban economy. Neighborhood is viewed as a good with demand, supply, and equilibrium aspects. Topics covered range from demand for neighborhood and interneighborhood mobility to neighborhood choice and transportation services. The role of governments as suppliers of neighborhoods is also considered.

Comprised of 12 chapters, this book begins with an introduction to some of the efforts to measure neighborhood effects and the approaches used in analyzing the role of neighborhood in the urban economy. The next section deals with the determinants of neighborhood demand in different eastern and midwestern cities in the United States in the mid- to late 1960s. The location choice of a sample of Pittsburgh households is examined, along with the role that neighborhood transition at the origin played in governing the decision to move or stay put. Subsequent chapters focus on the neighborhood choice of households already living in Washington, D.C., in 1968 as a joint prior choice of residential location, housing type, automobile ownership, and mode of travel to work; how the supply of certain kinds of neighborhoods can be determined by the interaction of residential demand and housing supply in the private sector; and optimum neighborhood supply by local governments. The concluding section analyzes neighborhood in an equilibrium setting, with emphasis on price outcomes and the quantity aspects of neighborhood.

This monograph will be of value to economists as well as to researchers and students interested in urban economics.

Table of Contents

List of Contributors



I Introduction

1 Introduction

1. New Concern for Neighborhoods

2. Can Neighborhood Be Measured?

3. About the Book


II Demand for Neighborhood

2 A Logit Model of Demand for Neighborhood

1. The Theoretical Model

2. Dimensions of the Model 21

3. Measuring Neighborhood Quality

4. Estimation of the Model

Appendix. The Logit Model


3 A Probability Model for Analyzing Interneighborhood Mobility

1. Introduction

2. Data Base

3. Empirical Results

4. Conclusion

Appendix 1. Comparable Ordinary Least Squares Results

Appendix 2. Comparison of Predicted and Actual Values of MOVE from Logistic Analysis


4 A Quasi-Loglinear Model of Neighborhood Choice

1. Introduction

2. An Economic Model of Neighborhood Choice

3. Estimation Technique

4. The Data

5. The Results

Appendix 1. Neighborhood Quality Data and Levels for Eleven Wilmington Area School Districts


5 Neighborhood Choice and Transportation Services

1. Introduction

2. Choice Theory and Spatial Alternatives

3. Measures in the Model

4. Definition of Choice Set

5. Specification of the Utility Function

6. Estimation Results

7. Prototypical Household Analysis: The Base Case

8. Prototypical Household Analysis: Policy Scenarios

9. Conclusions


III Neighborhood Supply

6 Private Residential Renewal and the Supply of Neighborhoods

1. Issues

2. Theoretical Tools

3. Demand: City Versus Suburb

4. Demand: Neighborhood Amenities

5. Neighborhood Amenities: Supply

6. Evidence

7. Implications for Policy


7 The Role of Governments as Suppliers of Neighborhoods

1. The Geography

2. The Government Sector

3. The Consumer

4. Benefit from Increasing the Public Good Spectrum

5. Biases Not due to Institutional Form

6. Biases Induced by Institutional Structure


8 Modeling Neighborhood Change

1. Introduction

2. Simulations of Neighborhood Change

3. The Role of Neighborhoods

4. Projections of Neighborhood Quality

5. Neighborhood Change, Maintenance, and Improvements

6. Concluding Observations


IV Equilibrium Approaches to Neighborhood

9 The Hedonic Price Approach to Measuring Demand for Neighborhood Characteristics

1. Hedonic Prices and the Demand for Neighborhood

2. The Identification Problem

3. Empirical Problems in Applying the Hedonic Technique

4. Neighborhood Variables in Air Pollution-Property Value Studies

5. Conclusions


10 The Disbenefits of Neighborhood and Environment to Urban Property

1. City-Centered Distance-Decay Relationships: The "Classical" Muth-Alonso Model

2. Modeling Strategy in the Chicago Case

3. Results

4. Classical Property Value Concepts Reconsidered

5. The Role of Amenity Value in Positive Distance Effects: The Muth-Alonso Model Reformulated

6. Do Blacks Pay More?


11 A Computational Approach to the Study of Neighborhood Effects in General Equilibrium Urban Land Use Models

1. Introduction

2. A Simple Model

3. Exogenous Neighborhood Effects

4. Endogenous Neighborhood Effects

5. Computational Examples


12 Local Public Goods and the Market for Neighborhoods

1. Introduction

2. Residential Choice

3. The Competitive Supply of Local Public Goods

4. Cooperation, Competition, and the Supply of Neighborhoods

5. The Competitive Supply of Neighbors

6. Conclusion




No. of pages:
© Academic Press 1979
Academic Press
eBook ISBN:

About the Editor

David Segal

Affiliations and Expertise

University of California, La Jolla, U.S.A.

Ratings and Reviews