Advanced Search
MyIDEAS: Login to save this paper or follow this series

Urban Renewal after the Berlin Wall

Contents:

Author Info

  • Gabriel M. Ahlfeldt

    ()
    (Department of Geography and Environment & Spatial Economics Research Centre (SERC), London School of Economics (LSE))

  • Wolfgang Maennig

    ()
    (Chair for Economic Policy, University of Hamburg)

  • Felix J. Richter

    ()
    (Chair for Economic Policy, University of Hamburg)

Abstract

Urban renewal areas are popular but empirically understudied spatial planning instruments designed to prevent urban decline and induce renewal. We use a quasi-experimental research design to study the effects of 22 renewal areas implemented in Berlin, Germany, to increase housing and living quality in the aftermath of the city’s division during the Cold War period. Our results suggest that the policy has helped reduce (increase) the number of buildings in poor (good) condition by 25% (10%). Property prices increased at an annual rate of 0.4-1.7% according to our preferred estimates. Evidence is weak at best, however, for positive housing externalities. More generally, our findings indicate that the efficiency of program evaluations for place based -policies using quasi-experimental methods increases with the number of targeted areas and areas that provide the counterfactual.

Download Info

If 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.
File URL: http://www.hced.uni-hamburg.de/WorkingPapers/HCED-049.pdf
File Function: First Version, 2013
Download Restriction: no

Bibliographic Info

Paper provided by Chair for Economic Policy, University of Hamburg in its series Working Papers with number 049.

as in new window
Length: 67 pages
Date of creation: 28 Nov 2013
Date of revision:
Publication status: Published in Hamburg Contemporary Economic Discussions, Issue 49, 2013
Handle: RePEc:hce:wpaper:049

Contact details of provider:
Postal: Von-Melle-Park 5 D-20146 Hamburg
Phone: +49 (0)40 / 4123-1
Fax: 49 (0)40 / 4123-6322
Web page: http://www.hced.uni-hamburg.de/
More information through EDIRC

Related research

Keywords: Urban; renewal; revitalization; redevelopment; hedonic regression; quasi-experiment;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Stephen Redding & Daniel M. Sturm, 2005. "The Costs of Remoteness: Evidence from German Division and Reunification," CEP Discussion Papers, Centre for Economic Performance, LSE dp0688, Centre for Economic Performance, LSE.
  2. Ciccone, Antonio, 2002. "Agglomeration effects in Europe," European Economic Review, Elsevier, Elsevier, vol. 46(2), pages 213-227, February.
  3. Leah Brooks & Justin Phillips, 2007. "Inside The Gift Horse'S Mouth: City Spending, Political Instituions And The Community Development Block Grant Program," Departmental Working Papers, McGill University, Department of Economics 2007-09, McGill University, Department of Economics.
  4. Stuart A. Gabriel & Stuart S. Rosenthal, 2004. "Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 438-444, February.
  5. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  6. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
  7. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, Econometric Society, vol. 70(4), pages 1445-1476, July.
  8. Gabriel M. Ahlfeldt & Nancy Holman, 2013. "No escape? The co-ordination problem in heritage preservation," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 53936, London School of Economics and Political Science, LSE Library.
  9. Blomquist, Glenn C & Berger, Mark C & Hoehn, John P, 1988. "New Estimates of Quality of Life in Urban Areas," American Economic Review, American Economic Association, American Economic Association, vol. 78(1), pages 89-107, March.
  10. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
  11. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
  12. N. Edward Coulson & Michael L. Lahr, 2005. "Gracing the Land of Elvis and Beale Street: Historic Designation and Property Values in Memphis," Real Estate Economics, American Real Estate and Urban Economics Association, American Real Estate and Urban Economics Association, vol. 33(3), pages 487-507, 09.
  13. Gerald A. Carlino & Albert Saiz, 2008. "City Beautiful," Working Papers 08-22, Federal Reserve Bank of Philadelphia.
  14. Ed Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," NBER Working Papers 7790, National Bureau of Economic Research, Inc.
  15. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  16. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
  17. Gerald Carlino & N. Edward Coulson, 2002. "Compensating differentials and the social benefits of the NFL," Working Papers 02-12, Federal Reserve Bank of Philadelphia.
  18. Ben Dachis & Gilles Duranton & Matthew A. Turner, 2012. "The effects of land transfer taxes on real estate markets: evidence from a natural experiment in Toronto," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 12(2), pages 327-354, March.
  19. Steve Gibbons & Stephen Machin, 2004. "Valuing Rail Access Using Transport Innovations," CEP Discussion Papers, Centre for Economic Performance, LSE dp0611, Centre for Economic Performance, LSE.
  20. Ahlfeldt, Gabriel M., 2011. "Blessing or curse? Appreciation, amenities and resistance to urban renewal," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 41(1), pages 32-45, January.
  21. Christian A. L. Hilber, 2010. "New Housing Supply and the Dilution of Social Capital," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0042, Spatial Economics Research Centre, LSE.
  22. 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.
  23. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 474-75, June.
  24. Carolyn A. Dehring & Craig A. Depken, II & Michael R. Ward, 2007. "A Direct Test of the Homevoter Hypothesis," Working Papers, International Association of Sports Economists;North American Association of Sports Economists 0719, International Association of Sports Economists;North American Association of Sports Economists.
  25. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 118(3), pages 485-535, 06.
  26. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
  27. Krugman, Paul, 1994. "Complex Landscapes in Economic Geography," American Economic Review, American Economic Association, American Economic Association, vol. 84(2), pages 412-16, May.
  28. Gabriel M. Ahlfeldt & Wolfgang Maennig, 2013. "Homevoters vs. leasevoters: a spatial analysis of airport effects," Working Papers, Institut d'Economia de Barcelona (IEB) 2013/15, Institut d'Economia de Barcelona (IEB).
  29. Krugman, Paul, 1991. "History and Industry Location: The Case of the Manufacturing Belt," American Economic Review, American Economic Association, American Economic Association, vol. 81(2), pages 80-83, May.
  30. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 77(6), pages 957-71, Nov./Dec..
  31. Brunner, Eric & Sonstelie, Jon & Thayer, Mark, 2001. "Capitalization and the Voucher: An Analysis of Precinct Returns from California's Proposition 174," Journal of Urban Economics, Elsevier, vol. 50(3), pages 517-536, November.
  32. David Albouy, 2009. "What Are Cities Worth? Land Rents, Local Productivity, and the Capitalization of Amenity Values," NBER Working Papers 14981, National Bureau of Economic Research, Inc.
  33. Gabriel M. Ahlfeldt & Georgios Kavetsos, 2011. "Form or Function? The Impact of New Football Stadia on Property Prices in London," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0087, Spatial Economics Research Centre, LSE.
  34. Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2010. "The Value of School Facility Investments: Evidence from a Dynamic Regression Discontinuity Design," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 125(1), pages 215-261, February.
  35. 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, American Real Estate and Urban Economics Association, vol. 38(2), pages 285-323.
  36. David E. Clark & William E. Herrin, 1997. "Historical Preservation Districts and Home Sale Prices: Evidence from the Sacramento Housing Market," The Review of Regional Studies, Southern Regional Science Association, Southern Regional Science Association, vol. 27(1), pages 29-48, Summer.
  37. Hans R. A. Koster & Piet Rietveld & Jos Van Ommeren, 2013. "Historic Amenities, Income and Sorting of Households," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0124, Spatial Economics Research Centre, LSE.
  38. Asabere, Paul K & Huffman, Forrest E & Mehdian, Seyed, 1994. "The Adverse Impacts of Local Historic Designation: The Case of Small Apartment Buildings in Philadelphia," The Journal of Real Estate Finance and Economics, Springer, Springer, vol. 8(3), pages 225-34, May.
  39. Cheshire, Paul & Sheppard, Stephen, 1995. "On the Price of Land and the Value of Amenities," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 62(246), pages 247-67, May.
  40. Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 774-806, August.
  41. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
  42. Tabuchi, Takatoshi & Yoshida, Atsushi, 2000. "Separating Urban Agglomeration Economies in Consumption and Production," Journal of Urban Economics, Elsevier, vol. 48(1), pages 70-84, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hce:wpaper:049. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabriel Ahlfeldt).

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.