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Homevoters vs. Leasevoters: A Spatial Analysis of Airport Effects

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  • Gabriel Ahlfeldt
  • Wolfgang Maennig

Abstract

We use a public referendum on a new air traffic concept in Berlin, Germany as a natural experiment to analyze how the interaction of tenure and capitalization effects shapes the outcome of direct democracy processes. We distinguish between homevoters, i.e., voters who are homeowners, and leasevoters, i.e., voters who lease their homes. We expect homevoters to be more likely to support or oppose initiatives that positively or negatively affect the amenity value of a neighborhood because some of the related benefits or costs of leasevoters are neutralized by adjustments in market rents (capitalization). Our empirical results are in line with our theoretical expectations and imply that public votes on local public goods do not necessarily reflect the spatial distribution of welfare effects in mixed-tenure environments.

Suggested Citation

  • Gabriel Ahlfeldt & Wolfgang Maennig, 2013. "Homevoters vs. Leasevoters: A Spatial Analysis of Airport Effects," CESifo Working Paper Series 4301, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4301
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christian A.L. Hilber & Jan Rouwendal & Wouter Vermeulen, 2014. "Local Economic Conditions and the Nature of New Housing Supply," Tinbergen Institute Discussion Papers 14-120/VIII, Tinbergen Institute.
    2. Fuess, Roland & Lerbs, Oliver, 2017. "Do Local Governments Tax Homeowner Communities Differently?," Working Papers on Finance 1714, University of St. Gallen, School of Finance.
    3. Murray, Cameron K. & Frijters, Paul, 2016. "Clean money, dirty system: Connected landowners capture beneficial land rezoning," Journal of Urban Economics, Elsevier, vol. 93(C), pages 99-114.
    4. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2013. "Urban Renewal after the Berlin Wall," Working Papers 049, Chair for Economic Policy, University of Hamburg.
    5. Roland Füss & Oliver Lerbs, 2017. "Homeowner Effect and Strategic Interaction in Local Property Taxation," ERES eres2017_149, European Real Estate Society (ERES).
    6. Martin, Thorsten, 2017. "You shall not build! (until tomorrow) [:] Electoral cycles and housing policies in Germany," MPRA Paper 78998, University Library of Munich, Germany.
    7. Maennig, Wolfgang & Ahlfeldt, Gabriel M. & Steenbeck, Malte, 2016. "Après nous le déluge? Direct democracy and intergenerational conflicts in aging societies," Annual Conference 2016 (Augsburg): Demographic Change 145793, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    referendum; homevoters; leasevoters; NIMBYism; rents; noise; airports; Berlin;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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