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NIMBY effect, mortgage payments and firm size: the different impact of homeownership on new businesses

Author

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  • Gaetano Lisi

    (University of Cassino and Southern Lazio)

Abstract

This empirical paper aims at integrating two recent and related research streams: the consensus about a negative effect of homeownership on new businesses (usually explained by the so-called ‘Not In My Back Yard' effect) and the negative impact of homeownership with mortgage payments on business start-up. Using a cross-section analysis in Italy, we find a first empirical evidence of a different impact of homeownership on new businesses according to the firm size. Precisely, the (negative) NIMBY effect works for medium- and large-sized enterprises, while outright homeownership has a positive effect on new small firms; instead, the negative effect of mortgage payments on business start-up concerns small firms.

Suggested Citation

  • Gaetano Lisi, 2018. "NIMBY effect, mortgage payments and firm size: the different impact of homeownership on new businesses," Economics Bulletin, AccessEcon, vol. 38(2), pages 908-915.
    • Handle: RePEc:ebl:ecbull:eb-18-00192
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    References listed on IDEAS

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    More about this item

    Keywords

    new businesses; business start-up; homeownership; NIMBY effect; mortgage payments; firm size.;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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