Effectiveness of RCA Institutions to Limit Local Externalities: Using Foreclosure Data to Test Covenant Effectiveness
AbstractResidential community associations (RCAs) are said to be an efficient institutional agreement to limit local spillovers. While several studies have identified a positive marginal effect of RCA rules, none have explicitly measured the effectiveness of these institutions to limit local externalities. This study measures this effectiveness by estimating how the direct and spillover price impacts caused by foreclosure differ by RCA status. Using a spatial hedonic model that controls for selection bias using propensity score methods and coarsened exact matching we find that foreclosed RCA properties experience smaller direct foreclosure discounts and produce smaller spill-over effects than their non-RCA counterparts.
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.
Bibliographic InfoArticle provided by University of Wisconsin Press in its journal Land Economics.
Volume (Year): 87 (2011)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://le.uwpress.org/
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stephan Whitaker & Thomas J. Fitzpatrick IV, 2012. "Land Bank 2.0: an empirical evaluation," Working Paper 1230, Federal Reserve Bank of Cleveland.
- Gunther Bensch & Jörg Peters & Maximiliane Sievert, 2012. "Fear of the Dark? – How Access to Electric Lighting Affects Security Attitudes and Nighttime Activities in Rural Senegal," Ruhr Economic Papers 0369, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Whitaker, Stephan & Fitzpatrick IV, Thomas J., 2013. "Deconstructing distressed-property spillovers: The effects of vacant, tax-delinquent, and foreclosed properties in housing submarkets," Journal of Housing Economics, Elsevier, vol. 22(2), pages 79-91.
- Gaétan de Rassenfosse & Alfons Palangkaraya & Elizabeth Webster, 2013. "Do Patents Shield Disclosure or Assure Exclusivity When Transacting Technology?," Melbourne Institute Working Paper Series wp2013n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.