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Urban renewal after the Berlin Wall: a place-based policy evaluation

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  • Ahlfeldt, Gabriel M.
  • Maennig, Wolfgang
  • Richter, Felix J.

Abstract

We use a quasi-experimental research design to study the effects of a spatially targeted renewal policy implemented in Berlin, Germany, in the aftermath of the city’s division during the Cold War period. Our results suggest that over the course of 20 years the policy helped to reduce (increase) the propensity of build-ings being in poor (good) condition within the targeted areas by, on average, 1.2–3% (0.6–2.5%) per year. The estimated effects on property prices range from 0.1–2% per year. In each case, the lower-bound estimate is not statistically significant. We find little evidence of positive housing externalities or positive welfare ef-fects.

Suggested Citation

  • Ahlfeldt, Gabriel M. & Maennig, Wolfgang & Richter, Felix J., 2017. "Urban renewal after the Berlin Wall: a place-based policy evaluation," LSE Research Online Documents on Economics 65329, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:65329
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    File URL: http://eprints.lse.ac.uk/65329/
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    1. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    2. Gabriel M. Ahlfeldt & Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2015. "The Economics of Density: Evidence From the Berlin Wall," Econometrica, Econometric Society, vol. 83, pages 2127-2189, November.
    3. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    4. Jeanty, P. Wilner & Partridge, Mark & Irwin, Elena, 2010. "Estimation of a spatial simultaneous equation model of population migration and housing price dynamics," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 343-352, September.
    5. Marlon G. Boarnet & Saksith Chalermpong & Elizabeth Geho, 2005. "Specification issues in models of population and employment growth," Papers in Regional Science, Wiley Blackwell, vol. 84(1), pages 21-46, March.
    6. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
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    More about this item

    Keywords

    urban; renewal; revitalization; redevelopment; quasi-experiment; placed-based policy evaluation; real estate; Berlin;
    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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