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Federal coordination of local housing demolition in the presence of filtering and migration

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  • Kristof Dascher

Abstract

Vacant housing and even housing demolition have recently become an issue in a number of countries. Given this renewed interest in demolition, this paper contributes to the literature on (i) housing demolition and (ii) policy coordination. The paper extends Sweeney’s (Econometrica 42:147–167, 1974a ) analysis of demolition and filtering, by letting households also choose their location. Then when demolishing part of its housing stock, a city effectively evicts some of its residents not just out of the housing quality it demolishes but out of every other of its qualities, too. The paper shows that demolition’s coordination strengthens local governments’ incentive to demolish part of their stock, by shutting down inter city migration within qualities.—A case study on Germany’s East illustrates the effects of coordinated, simultaneous every-city demolition. Copyright Springer Science+Business Media New York 2014

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  • Kristof Dascher, 2014. "Federal coordination of local housing demolition in the presence of filtering and migration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(3), pages 375-396, June.
    • Handle: RePEc:kap:itaxpf:v:21:y:2014:i:3:p:375-396
    DOI: 10.1007/s10797-013-9271-2
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    References listed on IDEAS

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    1. Ito, Tamon, 2007. "Effects of quality changes in rental housing markets with indivisibilities," Regional Science and Urban Economics, Elsevier, vol. 37(5), pages 602-617, September.
    2. Dascher, Kristof, 2012. "Home Voters, House Prices, and the Political Economy of Zoning," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62069, Verein für Socialpolitik / German Economic Association.
    3. Braid, Ralph M., 1981. "The short-run comparative statics of a rental housing market," Journal of Urban Economics, Elsevier, vol. 10(3), pages 286-310, November.
    4. Arnott, Richard & Davidson, Russell & Pines, David, 1986. "Spatial aspects of housing quality, density, and maintenance," Journal of Urban Economics, Elsevier, vol. 19(2), pages 190-217, March.
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    7. Sweeney, James L., 1974. "A commodity hierarchy model of the rental housing market," Journal of Urban Economics, Elsevier, vol. 1(3), pages 288-323, July.
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    12. Kaneko, Mamoru & Ito, Tamon & Osawa, Yu-ichi, 2006. "Duality in comparative statics in rental housing markets with indivisibilities," Journal of Urban Economics, Elsevier, vol. 59(1), pages 142-170, January.
    13. George R. Zodrow & Peter Mieszkowski, 2019. "Pigou, Tiebout, Property Taxation, and the Underprovision of Local Public Goods," World Scientific Book Chapters, in: George R Zodrow (ed.), TAXATION IN THEORY AND PRACTICE Selected Essays of George R. Zodrow, chapter 17, pages 525-542, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Alexander Daminger, 2021. "Subsidies to Homeownership and Central City Rent," Working Papers 210, Bavarian Graduate Program in Economics (BGPE).

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    More about this item

    Keywords

    Housing demolition; Policy coordination; Regional migration; Filtering; H73; D61; R21;
    All these keywords.

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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