Understanding Business Improvement District formation: An analysis of neighborhoods and boundaries
AbstractBusiness Improvement Districts (BIDs) provide supplemental services to urban commercial corridors using funds from member assessments. They have become a very popular urban revitalization tool, but their formation is still largely unexplained. Theory implies that BIDs will form if they add to aggregate welfare and if the marginal net benefit of membership is positive. I test this for the neighborhood overall and at the BID boundary. Using unique, micro-level and longitudinal data from New York City, I employ survival analysis methods to estimate the likelihood of a neighborhood forming a BID. I then estimate the likelihood of the marginal property’s BID membership by comparing the characteristics of properties located immediately inside and outside of the BID boundaries. I find that BIDs are more likely to form when there is more commercial space over which the BID benefits can be capitalized and when there is homogeneity in service and spending preferences across properties. BIDs also tend to form in neighborhoods that possess signs of appreciation and growth. Generally, BIDs are more likely to form in neighborhoods with higher valued properties with the exception of very wealthy areas. The BID boundary, however, is comprised of relatively less valuable properties.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Urban Economics.
Volume (Year): 71 (2012)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622905
Business Improvement Districts; Private governments; Public good provision; Urban revitalization; Economic development;
Find related papers by JEL classification:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helsley, Robert W. & Strange, William C., 2000. "Potential competition and public sector performance," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 30(4), pages 405-428, July.
- Sandra E. Black, 1997.
"Do better schools matter? Parental valuation of elementary education,"
Research Paper, Federal Reserve Bank of New York
9729, Federal Reserve Bank of New York.
- Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation Of Elementary Education," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 114(2), pages 577-599, May.
- Bergstrom, Theodore C & Goodman, Robert P, 1973. "Private Demands for Public Goods," American Economic Review, American Economic Association, American Economic Association, vol. 63(3), pages 280-96, June.
- Bond, Eric W. & Coulson, N. Edward, 1989. "Externalities, filtering, and neighborhood change," Journal of Urban Economics, Elsevier, Elsevier, vol. 26(2), pages 231-249, September.
- Helsley, Robert W. & Strange, William C., 1998. "Private government," Journal of Public Economics, Elsevier, Elsevier, vol. 69(2), pages 281-304, June.
- Jan K. Brueckner & Stuart S. Rosenthal, 2009.
"Gentrification and Neighborhood Housing Cycles: Will America's Future Downtowns Be Rich?,"
The Review of Economics and Statistics, MIT Press,
MIT Press, vol. 91(4), pages 725-743, November.
- Jan K. Brueckner & Stuart S. Rosenthal, 2005. "Gentrification and Neighborhood Housing Cycles: Will America's Future Downtowns be Rich?," CESifo Working Paper Series, CESifo Group Munich 1579, CESifo Group Munich.
- David Neumark & Jed Kolko, 2008.
"Do Enterprise Zones Create Jobs? Evidence from California's Enterprise Zone Program,"
NBER Working Papers
14530, National Bureau of Economic Research, Inc.
- Neumark, David & Kolko, Jed, 2010. "Do enterprise zones create jobs? Evidence from California's enterprise zone program," Journal of Urban Economics, Elsevier, Elsevier, vol. 68(1), pages 1-19, July.
- William C. Strange & Robert W. Helsley, 2000. "Social Interactions and the Institutions of Local Government," American Economic Review, American Economic Association, American Economic Association, vol. 90(5), pages 1477-1490, December.
- Leah Brooks, 2006.
"Unveiling Hidden Districts: Assessing The Adoption Patterns Of Business Improvement Districts In California,"
Departmental Working Papers, McGill University, Department of Economics
2006-03, McGill University, Department of Economics.
- Brooks, Leah, 2007. "Unveiling Hidden Districts: Assessing the Adoption Patterns of Business Improvement Districts in California," National Tax Journal, National Tax Association, National Tax Association, vol. 60(1), pages 5-24, March.
- Robert T. Greenbaum & John B. Engberg, 2004. "The impact of state enterprise zones on urban manufacturing establishments," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 23(2), pages 315-339.
- Robert Greenbaum & John Engberg, 2000. "An Evaluation Of State Enterprise Zone Policies," Review of Policy Research, Policy Studies Organization, Policy Studies Organization, vol. 17(2-3), pages 29-45, 06.
- Leah Brooks, 2006. "Does Spatial Variation in Heterogeneity Matter? Assessing the Adoption Patterns of Business Improvement Districts," Review of Policy Research, Policy Studies Organization, Policy Studies Organization, vol. 23(6), pages 1219-1234, November.
- Miller, Mark V., 2013. "Valuing local collective goods: the case of business improvement districts," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150635, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.