IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-19-00641.html
   My bibliography  Save this article

The Impact of Land Bank Demolitions on Property Values

Author

Listed:
  • Gregory T. Niemesh

    (Miami University and NBER)

  • L. Allison Jones-Farmer

    (Miami University)

  • Joseph Hart

    (Miami University)

  • William Holmes

    (Miami University)

  • Nathan Soundappan

    (Miami University)

Abstract

A modern land bank is a public entity that purchases and demolishes blighted housing to remove negative externalities. We estimate the impact of land bank demolitions on surrounding property values for a medium-sized municipality. Using a spatial correction hedonic model of house prices, we find modest but imprecise increases in sales prices associated with land bank activity in a neighborhood. In general, the impact estimates we find are smaller than those found in the literature for a much larger metropolitan area. We speculate on the cause of this difference in findings.

Suggested Citation

  • Gregory T. Niemesh & L. Allison Jones-Farmer & Joseph Hart & William Holmes & Nathan Soundappan, 2020. "The Impact of Land Bank Demolitions on Property Values," Economics Bulletin, AccessEcon, vol. 40(1), pages 217-233.
    • Handle: RePEc:ebl:ecbull:eb-19-00641
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2020/Volume40/EB-20-V40-I1-P21.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Stephen Gibbons & Henry G. Overman, 2012. "Mostly Pointless Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 172-191, May.
    2. Stephan Whitaker & Thomas J. Fitzpatrick IV, 2016. "Land Bank 2.0: An Empirical Evaluation," Journal of Regional Science, Wiley Blackwell, vol. 56(1), pages 156-175, January.
    3. Gibbons, Stephen & Overman, Henry G., 2012. "Mostly pointless spatial econometrics," LSE Research Online Documents on Economics 43403, London School of Economics and Political Science, LSE Library.
    4. David M. Brasington & Diane Hite, 2005. "Demand for Environmental Quality: A Spatial Hedonic Approach," Departmental Working Papers 2005-08, Department of Economics, Louisiana State University.
    5. Edward L. Glaeser & Joseph Gyourko, 2005. "Urban Decline and Durable Housing," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 345-375, April.
    6. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    7. Brasington, David M. & Hite, Diane, 2005. "Demand for environmental quality: a spatial hedonic analysis," Regional Science and Urban Economics, Elsevier, vol. 35(1), pages 57-82, January.
    8. Solmaria Halleck Vega & J. Paul Elhorst, 2015. "The Slx Model," Journal of Regional Science, Wiley Blackwell, vol. 55(3), pages 339-363, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tian, Jinfang & Yu, Longguang & Xue, Rui & Zhuang, Shan & Shan, Yuli, 2022. "Global low-carbon energy transition in the post-COVID-19 era," Applied Energy, Elsevier, vol. 307(C).
    2. Camila Alvayay Torrejón & Dusan Paredes & Mark Skidmore, 2023. "Impact of demolitions on neighboring property values in Detroit," Journal of Regional Science, Wiley Blackwell, vol. 63(5), pages 1073-1099, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mei, Yingdan & Hite, Diane & Sohngen, Brent, 2017. "Demand for urban tree cover: A two-stage hedonic price analysis in California," Forest Policy and Economics, Elsevier, vol. 83(C), pages 29-35.
    2. Gabriel S. Lee & Stefanie Braun, 2021. "Agglomeration Spillover Effects in German Land and House Prices at the City and County Levels," Working Papers 207, Bavarian Graduate Program in Economics (BGPE).
    3. Herrera Gómez, Marcos, 2017. "Fundamentos de Econometría Espacial Aplicada [Fundamentals of Applied Spatial Econometrics]," MPRA Paper 80871, University Library of Munich, Germany.
    4. Demidova, Olga, 2021. "Methods of spatial econometrics and evaluation of government programs effectiveness," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 64, pages 107-134.
    5. Borsky, Stefan & Kalkschmied, Katja, 2019. "Corruption in space: A closer look at the world's subnations," European Journal of Political Economy, Elsevier, vol. 59(C), pages 400-422.
    6. Marina Di Giacomo & Wolfgang Nagl & Philipp Steinbrunner, 2022. "Trump Digs Votes - The Effect of Trump's Coal Campaign on the Presidential Ballot in 2016," CESifo Working Paper Series 9817, CESifo.
    7. Storm, Hugo & Heckelei, Thomas, 2015. "Local and regional spatial interactions in the analysis of Norwegian farm growth," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212648, European Association of Agricultural Economists.
    8. Ryan R. Brady, 2021. "Direct Forecasting for Applied Regional Analysis," Departmental Working Papers 67, United States Naval Academy Department of Economics.
    9. Roger Bivand, 2017. "Revisiting the Boston data set - Changing the units of observation affects estimated willingness to pay for clean air," REGION, European Regional Science Association, vol. 4, pages 109-127.
    10. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 115-168, Elsevier.
    11. Xingang Wang & Sholeh A. Maani, 2021. "Ethnic regional networks and immigrants' earnings: A spatial autoregressive network approach," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 141-168, February.
    12. Weber, Jeremy G., 2014. "A decade of natural gas development: The makings of a resource curse?," Resource and Energy Economics, Elsevier, vol. 37(C), pages 168-183.
    13. Lisa Gianmoena & Vicente Rios, 2018. "The Determinants of CO2 Emissions Differentials with Cross-Country Interaction Effects: A Dynamic Spatial Panel Data Bayesian Model Averaging Approach," Discussion Papers 2018/234, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    14. Alan Fernihough & Kevin Hjortshøj, 2021. "Coal and the European Industrial Revolution," The Economic Journal, Royal Economic Society, vol. 131(635), pages 1135-1149.
    15. Marton, Tibor, 2015. "Spatial Concentration of Milk Production in Norway: The Flow of Quotas," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212657, European Association of Agricultural Economists.
    16. Jesús Peiró‐Palomino & Andrés J. Picazo‐Tadeo & Vicente Rios, 2020. "Well‐being in European regions: Does government quality matter?," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 555-582, June.
    17. Kabaya, Kei, 2021. "Empirical analysis of associations between health expenditure and forest environments: A case of Japan," Ecological Economics, Elsevier, vol. 181(C).
    18. Luis Orea & Inmaculada C. Álvarez, 2020. "How effective has been the Spanish lockdown to battle COVID-19? A spatial analysis of the coronavirus propagation across provinces," Working Papers 2020-03, FEDEA.
    19. Miryam S. Merk & Philipp Otto, 2022. "Estimation of the spatial weighting matrix for regular lattice data—An adaptive lasso approach with cross‐sectional resampling," Environmetrics, John Wiley & Sons, Ltd., vol. 33(1), February.
    20. Matthew Gnagey & Therese Grijalva, 2018. "The impact of trails on property values: a spatial analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 73-97, January.

    More about this item

    Keywords

    Land Bank; Spatial Econometrics; Property Values;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-19-00641. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.