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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 market conditions for social capital accumulation and neighborhood club good provision. A model of individual investment decisions predicts that in a setting with high property transaction costs (i) homeowners are more likely to invest in social capital than renters and (ii) the positive link between homeownership and social capital is stronger in more built-up neighborhoods with inelastic supply of new housing. In these neighborhoods homeowners are largely protected from inflows of newcomers that would dilute the net benefit from social capital in the longer run. Empirical evidence from the Social Capital Community Benchmark Survey confirms the model predictions. Instrumental variable estimates suggest that the effects are causal.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5134.

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Date of creation: 02 Aug 2007
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Handle: RePEc:pra:mprapa:5134

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Related research
Keywords: House price capitalization; social capital; homeownership; land and housing supply; neighborhood club goods.;

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Find related papers by JEL classification:
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
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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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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