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Determinants of Residential Location Choice: How Important Are Local Public Goods in Attracting Homeowners to Central City Locations?

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  • Isaac Bayoh
  • Elena G. Irwin
  • Timothy Haab

Abstract

A hybrid conditional logit choice model is estimated using data on the characteristics and destination of homeowners who engaged in intrametropolitan moves among 17 school districts within the Columbus, Ohio area in 1995. The model is used to test the relative influence of local fiscal and public goods versus household-level characteristics in determining household location choices across central city and suburban school districts. Results provide evidence of both a "natural evolution" of households to the suburbs, due to job location, residential filtering, and household income and lifecycle effects, and "flight from blight," due to lower school quality, higher crime levels, and lower average income levels in the city. In comparing the magnitudes of these variables, we find that school quality exerts the strongest influence: a 1-percent increase in the school quality of the city district increases the probability of choosing a city residence by 3.7 percent. In contrast, the effects of household income and other individual characteristics are relatively modest. The findings provide support for a "flight from blight" suburbanization process that is dominated by differences in neighborhood quality between the city and suburbs. An implication is that investments that promote central city development and reduce suburbanization are justified on efficiency grounds if negative externalities are generated by increased concentration of poverty, crime, and low school quality. Copyright Blackwell Publishers, 2006

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 46 (2006)
Issue (Month): 1 ()
Pages: 97-120

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Handle: RePEc:bla:jregsc:v:46:y:2006:i:1:p:97-120

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Cited by:
  1. Marcel Fafchamps & Forhad Shilpi, 2009. "Determinants of the Choice of Migration Destination," Economics Series Working Papers CSAE WPS/2009-09, University of Oxford, Department of Economics.
  2. Fafchamps, Marcel & Shilpi, Forhad, 2008. "Determinants of choice of migration destination," Policy Research Working Paper Series 4728, The World Bank.
  3. Bilger, Marcel & Carrieri, Vincenzo, 2013. "Health in the cities: When the neighborhood matters more than income," Journal of Health Economics, Elsevier, vol. 32(1), pages 1-11.
  4. Bento, Antonio M. & Franco, Sofia F. & Kaffine, Daniel T., 2011. "Effectiveness of housing revitalization subsidies in the presence of zoning," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 196-206, May.
  5. Groves, Jeremy R., 2009. "The impact of positive property tax differentials on the timing of development," Regional Science and Urban Economics, Elsevier, vol. 39(6), pages 739-748, November.

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