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Urban Renewal after the Berlin Wall

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  • Gabriel Ahlfeldt
  • Wolfgang Maennig
  • Felix J. Richter

Abstract

Urban renewal areas are popular but empirically understudied spatial planning instruments designed to prevent urban decline and induce renewal. We use a quasi-experimental research design to study the effects of 22 renewal areas implemented in Berlin, Germany, to increase housing and living quality in the aftermath of the city’s division during the Cold War period. Our results suggest that the policy has helped reduce (increase) the number of buildings in poor (good) condition by 25% (10%). Property prices increased at an annual rate of 0.4-1.7% according to our preferred estimates. Evidence is weak at best, however, for positive housing externalities. More generally, our findings indicate that the efficiency of program evaluations for place based -policies using quasi-experimental methods increases with the number of targeted areas and areas that provide the counterfactual.

Suggested Citation

  • Gabriel Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2013. "Urban Renewal after the Berlin Wall," CESifo Working Paper Series 4506, CESifo.
  • Handle: RePEc:ces:ceswps:_4506
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    2. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease vs. noise: Long-run changes in the value of transport (dis)amenities," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    3. Sylvain Chareyron & Florence Goffette-Nagot & Lucie Letrouit, 2019. "Impacts of a French urban renewal program on local housing markets," Post-Print halshs-02353718, HAL.
    4. Hans R. A. Koster & Jos van Ommeren, 2019. "Place-Based Policies and the Housing Market," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 400-414, July.
    5. Yang Bai & Wei Zhou & Yanjun Guan & Xue Li & Baohua Huang & Fengchun Lei & Hong Yang & Wenmin Huo, 2020. "Evolution of Policy Concerning the Readjustment of Inefficient Urban Land Use in China Based on a Content Analysis Method," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-21, January.
    6. Franziska K. Kruse & Wolfgang Maennig, 2017. "The future development of world records," Working Papers 061, Chair for Economic Policy, University of Hamburg.
    7. Ahlfeldt, Gabriel M. & Nitsch, Volker & Wendland, Nicolai, 2019. "Ease versus noise: long-run changes in the value of transport (dis)amenities," LSE Research Online Documents on Economics 102824, London School of Economics and Political Science, LSE Library.
    8. Franziska K. Kruse & Wolfgang Maennig, 2019. "Yellow Cards and Suspension by Choice: Determinants and Asymmetries," Working Papers 064, Chair for Economic Policy, University of Hamburg.
    9. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2017. "Zoning in reunified Berlin," Working Papers 059, Chair for Economic Policy, University of Hamburg.
    10. Kristoffer Moeller, 2013. "Culturally clustered or in the cloud? Location of internet start-ups in Berlin," ERSA conference papers ersa13p455, European Regional Science Association.
    11. Felix Richter, 2014. "Winner Picking in Urban Revitalization Policies: Empirical Evidence from Berlin," ERSA conference papers ersa14p1424, European Regional Science Association.
    12. Koster, Hans R.A. & van Ommeren, Jos & Volkhausen, Nicolas, 2018. "Short-term rentals and the housing market: Quasi-experimental evidence from Airbnb in Los Angeles," CEPR Discussion Papers 13094, C.E.P.R. Discussion Papers.
    13. Xizan Jin & Tachia Chin & Junli Yu & Yanjiang Zhang & Yingshuang Shi, 2020. "How Government’s Policy Implementation Methods Influence Urban Villagers’ Acceptance of Urban Revitalization Programs: Evidence from China," Land, MDPI, Open Access Journal, vol. 9(3), pages 1-19, March.
    14. Mark van Duijn & Jan Rouwendal & Richard Boersema, 2014. "Transformations of Industrial Heritage: Insights into External Effects on House Prices," Tinbergen Institute Discussion Papers 14-122/VIII, Tinbergen Institute.
    15. Wolfgang Maennig, 2017. "Public Referenda and Public Opinion on Olympic Games," Working Papers 057, Chair for Economic Policy, University of Hamburg.
    16. González-Pampillón, Nicolás & Jofre-Monseny, Jordi & Viladecans-Marsal, Elisabet, 2016. "Can Urban Renewal Policies Reverse Neighborhood Ethnic Dynamics?," CEPR Discussion Papers 11676, C.E.P.R. Discussion Papers.
    17. Steffen Q. Mueller, 2020. "Pre- and within-season attendance forecasting in Major League Baseball: a random forest approach," Applied Economics, Taylor & Francis Journals, vol. 52(41), pages 4512-4528, September.
    18. Kinne, Jan & Resch, Bernd, 2017. "Analysing and predicting micro-location patterns of software firms," ZEW Discussion Papers 17-063, ZEW - Leibniz Centre for European Economic Research.
    19. van Duijn, Mark & Rouwendal, Jan & Boersema, Richard, 2016. "Redevelopment of industrial heritage: Insights into external effects on house prices," Regional Science and Urban Economics, Elsevier, vol. 57(C), pages 91-107.
    20. Wolfgang Maennig, 2017. "Governance in Sports Organizations," Working Papers 060, Chair for Economic Policy, University of Hamburg.
    21. Steffen Q. Mueller & Patrick Ring & Maria Schmidt, 2019. "Forecasting economic decisions under risk: The predictive importance of choice-process data," Working Papers 066, Chair for Economic Policy, University of Hamburg.
    22. Song Zhang & Mark van Duijn & Arno J. van der Vlist, 2020. "The external effects of inner‐city shopping centers: Evidence from the Netherlands," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 583-611, September.
    23. Juan Uribe-Toril & José Luis Ruiz-Real & Jaime De Pablo Valenciano, 2018. "Gentrification as an Emerging Source of Environmental Research," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-14, December.
    24. Wolfgang Maennig, 2017. "Major Sports Events: Economic Impact," Working Papers 058, Chair for Economic Policy, University of Hamburg.

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    More about this item

    Keywords

    urban; renewal; revitalization; redevelopment; hedonic regression; quasi-experiment;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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