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Incentives and Social Capital: Are Homeowner's Better Citizens?

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Author Info
Denise DiPasquale
Edward L. Glaeser

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Abstract

Individuals invest in their local environments by volunteering, getting involved in local" government, becoming informed about their political leaders, joining non-professional" organizations and even gardening. Homeownership may encourage these investments because homeownership gives individuals an incentive to improve their community and because" homeownership creates barriers to mobility. Using the U.S. General Social Survey document that homeowners are more likely to invest in social capital, and a simple instrumental" variables strategy suggests that the relationship may be causal. While our results are not" conclusive, we find evidence that a large portion of the effect of homeownership on these" investments may come from lower mobility rates for homeowners. Using the German Socio-Economic Panel homeownership and citizenship controlling" for individual fixed effects. Finally, across cities and counties, areas with more homeowners" have lower government spending, but spend a larger share of their government budget on" education and highways.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6363.

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Date of creation: Jan 1998
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Handle: RePEc:nbr:nberwo:6363

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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.:
  1. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS) 475, University of Warwick, Department of Economics. [Downloadable!]
  2. James M. Poterba, 1996. "Demographic Structure and the Political Economy of Public Education," NBER Working Papers 5677, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Green, Richard K. & White, Michelle J., 1997. "Measuring the Benefits of Homeowning: Effects on Children," Journal of Urban Economics, Elsevier, vol. 41(3), pages 441-461, May. [Downloadable!] (restricted)
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  4. Lott, John R, Jr & Mustard, David B, 1997. "Crime, Deterrence, and Right-to-Carry Concealed Handguns," Journal of Legal Studies, University of Chicago Press, vol. 26(1), pages 1-68, January.
  5. Jorgenson, Dale W & Wilcoxen, Peter J, 1997. "The Long-Run Dynamics of Fundamental Tax Reform," American Economic Review, American Economic Association, vol. 87(2), pages 126-32, May. [Downloadable!] (restricted)
  6. Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 828-58, August. [Downloadable!] (restricted)
  7. Glenn C. Loury, 1976. "A Dynamic Theory of Racial Income Differences," Discussion Papers 225, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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