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Managing Common Property in Russian Cities: An Economic Analysis of Homeowners Associations

  • L. POLISHCHUK
  • E. BORISOVA
  • A. PERESETSKY.

Performance of Russian homeowners associations (HOAs) could serve as a litmus test for the Russian society’s capacity for self-organization. Efficiency of Russian HOAs is gauged in the paper by using the stochastic frontier technique. The variation of obtained performance indexes reflects observed HOA successes and failures. HOA are shown to be a superior alternative to municipal management of common property in residential housing only if there is a sufficient stock of a special kind of social capital — technical civic competence — in the community of tenants. Lack of social capital and insufficient competition between management companies prevent Russian HOAs from fully realizing their potential.

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Article provided by N.P. Redaktsiya zhurnala "Voprosy Economiki" in its journal Voprosy Economiki.

Volume (Year): 11 (2010)
Issue (Month): ()
Pages:

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Handle: RePEc:nos:voprec:2010-11-7
Contact details of provider: Web page: http://www.vopreco.ru/eng/year.html

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  1. Aghion, Philippe & Algan, Yann & Cahuc, Pierre & Shleifer, Andrei, 2010. "Regulation and Distrust," Scholarly Articles 12490649, Harvard University Department of Economics.
  2. Oliver Hart & Sanford Grossman, 1985. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Working papers 372, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Leonid POLISHCHUK, 2008. "Misuse of Institutions: Patterns and Causes," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 4, pages 57-80, December.
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  6. DiPasquale, Denise & Glaeser, Edward L., 1999. "Incentives and Social Capital: Are Homeowners Better Citizens?," Journal of Urban Economics, Elsevier, vol. 45(2), pages 354-384, March.
  7. Alberto Alesina & Eliana La Ferrara, 2000. "Participation In Heterogeneous Communities," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 847-904, August.
  8. Edward L. Glaeser & Bruce Sacerdote, 2001. "The Social Consequences of Housing," Harvard Institute of Economic Research Working Papers 1915, Harvard - Institute of Economic Research.
  9. La Ferrara, Eliana & Alesina, Alberto, 2000. "Participation in Heterogeneous Communities," Scholarly Articles 4551796, Harvard University Department of Economics.
  10. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
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  12. Borisova, Ekaterina I. & Peresetsky, Anatoly & Polishchuk, Leonid, 2010. "Stochastic frontier in non-profit associations’ performance assessment (the case of homeowners’ associations)," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 20(4), pages 75-101.
  13. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
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