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Tiebout Dynamics: Neighborhood Response To A Central-City/Suburban House-Price Differential

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  • Paul Thorsnes
  • John W. Reifel

Abstract

We take advantage of an unusual natural experiment-a high-quality 1920s subdivision split neatly in half by a central-city/suburban boundary-to study the response over 30 years to the relative decline in the quality of central-city services since the 1960s. As expected, a large sale price differential opens in the 1960s. Demographic characteristics are nevertheless similar across the boundary. Survey data indicate Tiebout sorting: the central city side attracts households who prefer alternatives to suburban public schools. Children attend parochial and public "magnet" schools. A neighborhood association supplements municipal services. Rigid service district boundaries inhibit closure of the house-price differential. Copyright Blackwell Publishing, Inc. 2007

Suggested Citation

  • Paul Thorsnes & John W. Reifel, 2007. "Tiebout Dynamics: Neighborhood Response To A Central-City/Suburban House-Price Differential," Journal of Regional Science, Wiley Blackwell, vol. 47(4), pages 693-719.
  • Handle: RePEc:bla:jregsc:v:47:y:2007:i:4:p:693-719
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    References listed on IDEAS

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    1. Thomas J. Kane & Douglas O. Staiger & Stephanie K. Riegg, 2005. "School Quality, Neighborhoods and Housing Prices: The Impacts of school Desegregation," NBER Working Papers 11347, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Daniel P. McMillen, 2010. "Issues In Spatial Data Analysis," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 119-141.
    2. repec:kap:jrefec:v:55:y:2017:i:4:d:10.1007_s11146-017-9632-1 is not listed on IDEAS
    3. Marc Francke, 2010. "Repeat Sales Index for Thin Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 41(1), pages 24-52, July.
    4. Mick Silver, 2016. "How to Better Measure Hedonic Residential Property Price Indexes," IMF Working Papers 16/213, International Monetary Fund.

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