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Neighborhood Effects: Accomplishments And Looking Beyond Them

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  • Yannis M. Ioannides
  • Giorgio Topa

Abstract

ABSTRACT The paper addresses the empirical significance of the social context in economic decisions. Decisions of individuals who share spatial and social milieus are likely to be interdependent, and econometric identification of social effects poses intricate data and methodological problems, including dealing with self‐selection in spatial and social groups. It uses a simple empirical framework to introduce social interactions effects at different levels of aggregation, and examines estimation problems in linear models, the impact of self‐selection and of nonlinearities. It also examines neighborhood effects in job matching and proposes a research agenda that offers new techniques and data sources.

Suggested Citation

  • Yannis M. Ioannides & Giorgio Topa, 2010. "Neighborhood Effects: Accomplishments And Looking Beyond Them," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 343-362, February.
    • Handle: RePEc:bla:jregsc:v:50:y:2010:i:1:p:343-362
    DOI: 10.1111/j.1467-9787.2009.00638.x
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    JEL classification:

    • C00 - Mathematical and Quantitative Methods - - General - - - General
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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