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Determinants of Historic and Cultural Landmark Designation: Why We Preserve What We Preserve

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  • Noonan, Douglas S.

    (Georgia Tech)

  • Krupka, Douglas J.

    (University of Michigan)

Abstract

There is much interest among cultural economists in assessing the effects of heritage preservation policies. There has been less interest in modeling the policy choices made in historic and cultural landmark preservation. This paper builds an economic model of a landmark designation that highlights the tensions between the interests of owners of cultural amenities and the interests of the neighboring community. We perform empirical tests by estimating a discrete choice model for landmark preservation using data from Chicago, combining the Chicago Historical Resources Survey of over 17,000 historic structures with property sales, Census, and other geographic data. The data allow us to explain why some properties were designated landmarks (or landmark districts) and others were not. The results identify the influence of property characteristics, local socio-economic factors, and measures of historic and cultural quality. The results emphasize the political economy of implementing preservation policies.

Suggested Citation

  • Noonan, Douglas S. & Krupka, Douglas J., 2008. "Determinants of Historic and Cultural Landmark Designation: Why We Preserve What We Preserve," IZA Discussion Papers 3777, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3777
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    References listed on IDEAS

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    2. N. Edward Coulson & Robin M. Leichenko, 2004. "Historic Preservation and Neighbourhood Change," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1587-1600, July.
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    10. Coulson, N Edward & Leichenko, Robin M, 2001. "The Internal and External Impact of Historical Designation on Property Values," The Journal of Real Estate Finance and Economics, Springer, vol. 23(1), pages 113-124, July.
    11. Gabriel M. Ahlfeldt & Wolfgang Maennig, 2010. "Substitutability and Complementarity of Urban Amenities: External Effects of Built Heritage in Berlin," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 285-323, June.
    12. Anna Alberini & Alberto Longo, 2006. "Combining the travel cost and contingent behavior methods to value cultural heritage sites: Evidence from Armenia," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 30(4), pages 287-304, December.
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    Cited by:

    1. Gabriel Ahlfeldt & Kristoffer Möller & Sevrin Waights & Nicolai Wendland, 2012. "On prisoner's dilemmas and gilded cages: The economics of heritage preservation," ERSA conference papers ersa12p783, European Regional Science Association.
    2. Tetsuharu Oba & Douglas Simpson Noonan, 2020. "The Price of Preserving Neighborhoods: The Unequal Impacts of Historic District Designation," Economic Development Quarterly, , vol. 34(4), pages 343-355, November.
    3. Douglas S. Noonan & Douglas J. Krupka, 2011. "Making—or Picking—Winners: Evidence of Internal and External Price Effects in Historic Preservation Policies," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 39(2), pages 379-407, June.
    4. Kean Siang Ch’Ng & Suet Leng Khoo, 2015. "Market Mechanisms To Allocate Heritage Conservation Fund: An Experimental Study," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 60(05), pages 1-19, December.
    5. Faroek Lazrak & Peter Nijkamp & Piet Rietveld & Jan Rouwendal, 2014. "The market value of cultural heritage in urban areas: an application of spatial hedonic pricing," Journal of Geographical Systems, Springer, vol. 16(1), pages 89-114, January.
    6. Ruben Loon & Tom Gosens & Jan Rouwendal, 2014. "Cultural heritage and the attractiveness of cities: evidence from recreation trips," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 38(3), pages 253-285, August.
    7. Ilde Rizzo, 2011. "Regulation," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 54, Edward Elgar Publishing.
    8. Victoria Ateca Amestoy, 2013. "Demand for cultural heritage," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 4, pages i-i, Edward Elgar Publishing.
    9. repec:ehu:dfaeii:6466 is not listed on IDEAS
    10. Jen D. Snowball, 2013. "The economic, social and cultural impact of cultural heritage: methods and examples," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 22, pages i-i, Edward Elgar Publishing.
    11. Fan Zhang & Xiuyan Liu & Songlin Li, 2023. "Rebuilding or refurbishing: Heterogeneity effects of urban renewal strategy," Asian Economic Journal, East Asian Economic Association, vol. 37(1), pages 51-81, March.
    12. Douglas S. Noonan, 2013. "Market effects of historic preservation," Chapters, in: Ilde Rizzo & Anna Mignosa (ed.), Handbook on the Economics of Cultural Heritage, chapter 17, pages i-i, Edward Elgar Publishing.
    13. Martin Heintzelman & Jason Altieri, 2013. "Historic Preservation: Preserving Value?," The Journal of Real Estate Finance and Economics, Springer, vol. 46(3), pages 543-563, April.
    14. Jiquan Chen & Hogeun Park & Peilei Fan & Li Tian & Zutao Ouyang & Raffaele Lafortezza, 2021. "Cultural Landmarks and Urban Landscapes in Three Contrasting Societies," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    15. Lu, Jiaxuan, 2023. "The economics of China’s between-city height competition: A regression discontinuity approach," Regional Science and Urban Economics, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    landmark designation; heritage preservation policy;

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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