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Place-based policies and the housing market

Author

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  • Hans R.A. Koster

    (VU Amsterdam, the Netherlands)

  • Jos van Ommeren

    (VU Amsterdam, the Netherlands)

Abstract

We study the economic effects of place-based policies in the housing market, by investigating the effects of a place-based programme on prices of surrounding owner-occupied properties. The programme improved the quality of public housing in 83 impoverished neighbourhoods throughout the Netherlands We combine a first-difference approach with a fuzzy regression-discontinuity design to address the fundamental issue that these neighbourhoods are endogenously treated. Improvements in public housing induced surrounding housing prices to increase by 3.5 percent. The programme’s external benefits are sizeable and at least half of the value of investments in public housing.

Suggested Citation

  • Hans R.A. Koster & Jos van Ommeren, 2017. "Place-based policies and the housing market," Tinbergen Institute Discussion Papers 17-008/VIII, Tinbergen Institute, revised 10 Aug 2018.
    • Handle: RePEc:tin:wpaper:20170008
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    References listed on IDEAS

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    More about this item

    Keywords

    house prices; place-based policies; public housing; housing spillovers;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets

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