IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2022i1p345-d1014966.html
   My bibliography  Save this article

Join the Club: Club Goods, Residential Development, and Transportation

Author

Listed:
  • Ravit Hananel

    (Urban Policy Laboratory, Department of Public Policy, Tel-Aviv University, Tel Aviv 6997801, Israel)

  • Joseph Berechman

    (Department of Economics and Business, City College of New York, City University of New York, New York, NY 10031, USA)

  • Sagit Azary-Viesel

    (Urban Policy Laboratory, Department of Public Policy, Tel-Aviv University, Tel Aviv 6997801, Israel)

Abstract

A good and sustainable city requires compatibility between the various functions and services that it provides its residents. This study examined the relations between the development of new residential neighborhoods and transportation infrastructure by applying Tiebout’s model of club goods. Thus, we introduced the spatial dimension into the theory of club goods by referring to neighborhoods as clubs and their residents as the club’s members, who make location decisions. Specifically, we explored how residents behave spatially in response to the problematic transportation infrastructure of the neighborhoods. That is, to consider the socioeconomic implications of inadequate transportation infrastructure, we used data from newly developed neighborhoods in Israel to examine the extent to which an increase in traffic congestion can reduce a neighborhood’s size. Our findings show a negative correlation between increases in travel time and the number of housing transactions undertaken in a given neighborhood, thus confirming Tiebout’s assumption that people vote with their feet: When traffic congestion increases, residents prefer to leave the neighborhood and move, in all likelihood, to a place with less congestion. The paper also discusses the results with respect to the social consequences of these trends and warns against the expected socioeconomic consequences, namely that those who can afford to do so will leave in favor of a club with better conditions. The key lessons derived from this study of the Israeli experience are considered relevant to many other countries experiencing similar situations.

Suggested Citation

  • Ravit Hananel & Joseph Berechman & Sagit Azary-Viesel, 2022. "Join the Club: Club Goods, Residential Development, and Transportation," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
  • Handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:345-:d:1014966
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/1/345/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/1/345/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McGuire, Martin, 1974. "Group Segregation and Optimal Jurisdictions," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 112-132, Jan.-Feb..
    2. Evan McKenzie, 2003. "Common‐interest housing in the communities of tomorrow," Housing Policy Debate, Taylor & Francis Journals, vol. 14(1-2), pages 203-234.
    3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    4. Mualam, Nir, 2018. "Playing with Supertankers: Centralization in Land Use Planning in Israel — A National Experiment Underway," Land Use Policy, Elsevier, vol. 75(C), pages 269-283.
    5. Sandler, Todd & Tschirhart, John, 1997. "Club Theory: Thirty Years Later," Public Choice, Springer, vol. 93(3-4), pages 335-355, December.
    6. Thomopoulos, N. & Grant-Muller, S. & Tight, M.R., 2009. "Incorporating equity considerations in transport infrastructure evaluation: Current practice and a proposed methodology," Evaluation and Program Planning, Elsevier, vol. 32(4), pages 351-359, November.
    7. Berglas, Eitan & Helpman, Elhanan & Pines, David, 1982. "The economic theory of clubs : Some clarifications," Economics Letters, Elsevier, vol. 10(3-4), pages 343-348.
    8. Alfasi, Nurit & Migdalovich, Eyal, 2020. "Losing faith in planning," Land Use Policy, Elsevier, vol. 97(C).
    9. Sebastian Schipper, 2015. "Towards a ‘Post-Neoliberal’ Mode of Housing Regulation? The Israeli Social Protest of Summer 2011," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 39(6), pages 1137-1154, November.
    10. Margalit, Talia & Mualam, Nir, 2020. "Selective rescaling, inequality and popular growth coalitions: The case of the Israeli national plan for earthquake preparedness," Land Use Policy, Elsevier, vol. 99(C).
    11. Ravit Hananel, 2013. "Planning Discourse versus Land Discourse: The 2009–12 Reforms in Land-Use Planning Policy and Land Policy in Israel," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(5), pages 1611-1637, September.
    12. Altshuler, Alan, 2013. "Equity as a Factor in Surface Transportation," University of California Transportation Center, Working Papers qt7pd4c1jj, University of California Transportation Center.
    13. Heikkila, Eric J., 1996. "Are municipalities Tieboutian clubs?," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 203-226, April.
    14. Feitelson, Eran, 2018. "Shifting sands of planning in Israel," Land Use Policy, Elsevier, vol. 79(C), pages 695-706.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ravit Hananel, 2021. "Bills, Rights and Housing Policy: The Evolution of Israel’s Seven-Decade Housing-Related Bills," Sustainability, MDPI, vol. 13(9), pages 1-18, April.
    2. Nurit Alfasi & Talia Margalit, 2021. "Toward the Sustainable Metropolis: The Challenge of Planning Regulation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    3. Fleming, Euan & Griffith, Garry & Mounter, Stuart & Baker, Derek, 2018. "Consciously Pursued Joint Action: Agricultural and Food Value Chains as Clubs," 2018 International European Forum (163rd EAAE Seminar), February 5-9, 2018, Innsbruck-Igls, Austria 276879, International European Forum on System Dynamics and Innovation in Food Networks.
    4. María Verónica Alderete, 2015. "Redes de pymes: una visión desde las teorías de club y de equipo," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(32), pages 317-348, January-J.
    5. Todd Sandler, 2013. "Buchanan clubs," Constitutional Political Economy, Springer, vol. 24(4), pages 265-284, December.
    6. Shamai, Moshe & Hananel, Ravit, 2021. "One+One+One=A lot," Land Use Policy, Elsevier, vol. 100(C).
    7. Fleming, Euan & Griffith, Garry & Mounter, Stuart & Baker, Derek, 2018. "Consciously Pursued Joint Action: Agricultural and Food Value Chains as Clubs," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(2), March.
    8. Yang, Chia-yen, 2000. "The organizational choice of public good provision," ISU General Staff Papers 2000010108000013664, Iowa State University, Department of Economics.
    9. Melle Marco C., 2014. "Eine europäische Bemessungsgrundlage für die Körperschaftsteuer? Konzeption und ordnungsökonomische Analyse / Conceptual design and constitutional economics analysis of a European tax base for corpora," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 133-156, January.
    10. Dawkins, Casey J., 2005. "Tiebout choice and residential segregation by race in US metropolitan areas, 1980-2000," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 734-755, November.
    11. André Torre, 2002. "Les AOC sont-elles des clubs ? Réflexions sur les conditions de l'action collective localisée, entre coopération et règles formelles," Revue d'Économie Industrielle, Programme National Persée, vol. 100(1), pages 39-62.
    12. John P. Conley & Myrna Holtz Wooders, 1998. "The Tiebout Hypothesis: On the Existence of Pareto Efficient Competitive Equilibrium," Working Papers mwooders-98-06, University of Toronto, Department of Economics.
    13. J. Vernon Henderson & Jacques-Francois Thisse, 2001. "On Strategic Community Development," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 546-569, June.
    14. Anuj Bhowmik & Japneet Kaur, 2022. "Competitive equilibria and robust efficiency with club goods," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2022-014, Indira Gandhi Institute of Development Research, Mumbai, India.
    15. de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
    16. Japneet Kaur, 2023. "Stable sets in economies with club goods," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2023-011, Indira Gandhi Institute of Development Research, Mumbai, India.
    17. Don Fullerton, 1983. "Which Effective Tax Rate?," NBER Working Papers 1123, National Bureau of Economic Research, Inc.
    18. John P. Conley & Robert Driskill & Ping Wang, 2019. "Capitalization, decentralization, and intergenerational spillovers in a Tiebout economy with a durable public good," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 67(1), pages 1-27, February.
    19. Allouch, Nizar & Conley, John P. & Wooders, Myrna, 2009. "Anonymous price taking equilibrium in Tiebout economies with a continuum of agents: Existence and characterization," Journal of Mathematical Economics, Elsevier, vol. 45(9-10), pages 492-510, September.
    20. Chris Webster, 2003. "The Donald Robertson Memorial Prizewinner 2003 The Nature of the Neighbourhood," Urban Studies, Urban Studies Journal Limited, vol. 40(13), pages 2591-2612, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2022:i:1:p:345-:d:1014966. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.