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Slum Clearance and Urban Renewal in the United States

Author

Listed:
  • William J. Collins
  • Katharine L. Shester

Abstract

We study the local effects of a federal program that helped cities clear areas for redevelopment, rehabilitate structures, complete city plans, and enforce building codes. We use an instrumental variable strategy to estimate the program's effects on city-level measures of income, property values, employment and poverty rates, and population. The estimated effects on income, property values, and population are positive and economically significant. They are not driven by changes in demographic composition. Estimated effects on poverty reduction and employment are positive but imprecise. The results are consistent with a model in which local productivity is enhanced. (JEL I32, N32, N92, R23, R38, R58)

Suggested Citation

  • William J. Collins & Katharine L. Shester, 2013. "Slum Clearance and Urban Renewal in the United States," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 239-273, January.
    • Handle: RePEc:aea:aejapp:v:5:y:2013:i:1:p:239-73
    Note: DOI: 10.1257/app.5.1.239
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    References listed on IDEAS

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    1. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 155-253.
    2. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
    3. Joshua D. Angrist & Alan B. Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 69-85, Fall.
    4. Brueckner, Jan K. & Helsley, Robert W., 2011. "Sprawl and blight," Journal of Urban Economics, Elsevier, vol. 69(2), pages 205-213, March.
    5. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    6. repec:taf:houspd:v:15:y:2004:i:4:p:903-934 is not listed on IDEAS
    7. Joshua Angrist & Alan Krueger, 2001. "Instrumental Variables and the Search for Identification: From Supply and Demand to Natural Experiments," Working Papers 834, Princeton University, Department of Economics, Industrial Relations Section..
    8. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, Oxford University Press, vol. 122(2), pages 775-805.
    9. Stock, James H & Wright, Jonathan H & Yogo, Motohiro, 2002. "A Survey of Weak Instruments and Weak Identification in Generalized Method of Moments," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(4), pages 518-529, October.
    10. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2008. "Identifying Agglomeration Spillovers: Evidence from Million Dollar Plants," Working Paper series 36_08, Rimini Centre for Economic Analysis.
    11. Leah Platt Boustan, 2010. "Was Postwar Suburbanization "White Flight"? Evidence from the Black Migration," The Quarterly Journal of Economics, Oxford University Press, vol. 125(1), pages 417-443.
    12. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    13. repec:fth:prinin:455 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Richard Hornbeck & Daniel Keniston, 2017. "Creative Destruction: Barriers to Urban Growth and the Great Boston Fire of 1872," American Economic Review, American Economic Association, vol. 107(6), pages 1365-1398, June.
    2. Giuseppe Albanese & Emanuele Ciani & Guido de Blasio, 2019. "Anything new in town? The local effects of Urban Regeneration Policies in Italy," Temi di discussione (Economic working papers) 1214, Bank of Italy, Economic Research and International Relations Area.
    3. Chen, Daniel L. & Yeh, Susan, 2016. "Government Expropriation Increases Economic Growth and Racial Inequality: Evidence from Eminent Domain," IAST Working Papers 16-46, Institute for Advanced Study in Toulouse (IAST).
    4. Xu, Hangtian, 2017. "Spatial Reorganization in Urban Redevelopment: Evidence from an Earthquake in a Metropolitan Area," MPRA Paper 78986, University Library of Munich, Germany.
    5. Leah Platt Boustan & Robert A. Margo, 2011. "White Suburbanization and African-American Home Ownership, 1940-1980," NBER Working Papers 16702, National Bureau of Economic Research, Inc.
    6. repec:fip:fedpei:00020 is not listed on IDEAS
    7. Leah Platt Boustan & Devin Michelle Bunten & Owen Hearey, 2013. "Urbanization in the United States, 1800-2000," NBER Working Papers 19041, National Bureau of Economic Research, Inc.
    8. Matthew Ranson & Lisa Tarquinio & Audrey Lew, 2016. "Modeling the Impact of Climate Change on Extreme Weather Losses," NCEE Working Paper Series 201602, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised May 2016.

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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