The Economics of Neighborhood

List of Contributors

Foreword

Acknowledgments

I Introduction


1 Introduction


1. New Concern for Neighborhoods


2. Can Neighborhood Be Measured?


3. About the Book

References

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

References


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

References


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

References


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

References

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

References


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

References


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

References

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

References


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?

References


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

References


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

References

Index