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New Housing Supply and the Dilution of Social Capital

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Author Info
Hilber, Christian A. L.

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Abstract

This paper examines the role of local housing supply conditions for social capital investment. Using an instrumental variables approach and data from the Social Capital Community Benchmark Survey, it is documented that the positive link between homeownership and individual social capital investment is largely confined to more built-up neighborhoods (with more inelastic supply of new housing). The empirical findings provide support for the proposition that in these localities house price capitalization provides additional incentives for homeowners to invest in social capital. The findings are also largely consistent with the proposition that built-up neighborhoods provide protection from inflows of newcomers that could upset a mutually beneficial equilibrium involving reciprocal cooperation. However, the results do not appear to be driven by selection based on inherent differences in social aptitudes or by Tiebout sorting.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11620.

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Date of creation: 02 Aug 2007
Date of revision: 14 Nov 2008
Handle: RePEc:pra:mprapa:11620

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Related research
Keywords: House price capitalization; social capital; homeownership; land and housing supply; reciprocal cooperation.;

Other versions of this item:

Find related papers by JEL classification:
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
R21 - Urban, Rural, and Regional Economics - - Household Analysis - - - Housing Demand
R31 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Housing Supply and Markets

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References listed on IDEAS
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    Other versions:
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Full references

Cited by:
(explanations, 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. Hilber, Christian A. L., 2007. "New Housing Supply and the Dilution of Social Capital," MPRA Paper 11620, University Library of Munich, Germany, revised 14 Nov 2008. [Downloadable!]
    Other versions:
  2. Yamamura, Eiji, 2009. "How are social ties formed? : Interaction of neighborhood and individual immobility," MPRA Paper 15124, University Library of Munich, Germany. [Downloadable!]
  3. Yamamura, Eiji, 2009. "How do neighbors influence investment in social capital? : Homeownership and length of residence," MPRA Paper 15174, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  4. Yamamura, Eiji, 2009. "What Discourages Participation in the Lay Judge System (Saiban’in Seido) of Japan? Interaction between the Secrecy Requirement and Social Networks," MPRA Paper 17197, University Library of Munich, Germany. [Downloadable!]
  5. Yamamura, Eiji, 2009. "What discourages participation in the lay judge system (Saiban'in seido) of Japan? : an interaction effect between the secrecy requirement and social network," MPRA Paper 15920, University Library of Munich, Germany. [Downloadable!]
  6. Yamamura, Eiji, 2009. "Why effects of social capital on health status differ between genders: considering the labor market condition," MPRA Paper 14985, University Library of Munich, Germany. [Downloadable!]
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