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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 Group Munich.
  • Handle: RePEc:ces:ceswps:_4506
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    Cited by:

    1. Mark Van Duijn & Jan Rouwendal & Richard Boersema, 2014. "Transformations of industrial heritage: Insights into external effects on house prices," ERES eres2014_59, European Real Estate Society (ERES).
    2. Maximilian von Ehrlich & Tobias Seidel, 2015. "The Persistent Effects of Place-Based Policy: Evidence from the West-German Zonenrandgebiet," CESifo Working Paper Series 5373, CESifo Group Munich.
    3. Wolfgang Maennig, 2017. "Governance in Sports Organizations," Working Papers 060, Chair for Economic Policy, University of Hamburg.
    4. Wolfgang Maennig, 2017. "Public Referenda and Public Opinion on Olympic Games," Working Papers 057, Chair for Economic Policy, University of Hamburg.
    5. Franziska K. Kruse & Wolfgang Maennig, 2018. "Suspension by choice – determinants and asymmetries," Working Papers 064, Chair for Economic Policy, University of Hamburg.
    6. Kristoffer Moeller, 2013. "Culturally clustered or in the cloud? Location of internet start-ups in Berlin," ERSA conference papers ersa13p455, European Regional Science Association.
    7. Gabriel M. Ahlfeldt & Wolfgang Maennig & Felix J. Richter, 2017. "Zoning in reunified Berlin," Working Papers 059, Chair for Economic Policy, University of Hamburg.
    8. 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.
    9. Xu, Hangtian, 2017. "Spatial Reorganization in Urban Redevelopment: Evidence from an Earthquake in a Metropolitan Area," MPRA Paper 78986, University Library of Munich, Germany.
    10. Steffen Q. Mueller, 2018. "Pre- and within-season attendance forecasting in Major League Baseball: A random forest approach," Working Papers 065, Chair for Economic Policy, University of Hamburg.
    11. Kinne, Jan & Resch, Bernd, 2017. "Analysing and predicting micro-location patterns of software firms," ZEW Discussion Papers 17-063, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Felix Richter, 2014. "Winner Picking in Urban Revitalization Policies: Empirical Evidence from Berlin," ERSA conference papers ersa14p1424, European Regional Science Association.
    13. Hans R.A. Koster & Jos van Ommeren, 2017. "Place-based policies and the housing market," Tinbergen Institute Discussion Papers 17-008/VIII, Tinbergen Institute, revised 10 Aug 2018.
    14. 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.
    15. Franziska K. Kruse & Wolfgang Maennig, 2017. "The future development of world records," Working Papers 061, Chair for Economic Policy, University of Hamburg.
    16. Wolfgang Maennig, 2017. "Major Sports Events: Economic Impact," Working Papers 058, Chair for Economic Policy, University of Hamburg.

    More about this item

    Keywords

    urban; renewal; revitalization; redevelopment; hedonic regression; quasi-experiment;

    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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