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Keeping up with the Joneses: Neighborhood effects in housing renovation

  • Helms, Andrew C.
Registered author(s):

    Despite widespread recognition that housing renovation is influenced by “neighborhood effects”, virtually all empirical studies have failed to identify a positive feedback effect between renovation activity and neighborhood quality. By explicitly modeling the spatial interdependence of households' renovation decisions and analyzing a detailed block-level data set, this study finds strong empirical evidence that endogenous neighborhood effects exist as expected. Moreover, by considering four different parameterizations of a “neighborhood set” and comparing the results of these spatial econometric models with a standard OLS estimation, this paper provides insight into some common methodological issues encountered when modeling neighborhood effects.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0166046211001001
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    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 42 (2012)
    Issue (Month): 1-2 ()
    Pages: 303-313

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    Handle: RePEc:eee:regeco:v:42:y:2012:i:1:p:303-313
    Contact details of provider: Web page: http://www.elsevier.com/locate/regec

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