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Urban Renewal after the Berlin Wall

  • Gabriel M. Ahlfeldt

    ()

    (Department of Geography and Environment & Spatial Economics Research Centre (SERC), London School of Economics (LSE))

  • Wolfgang Maennig

    ()

    (Chair for Economic Policy, University of Hamburg)

  • Felix J. Richter

    ()

    (Chair for Economic Policy, University of Hamburg)

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.

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File URL: http://www.hced.uni-hamburg.de/WorkingPapers/HCED-049.pdf
File Function: First Version, 2013
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Paper provided by Chair for Economic Policy, University of Hamburg in its series Working Papers with number 049.

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Length: 67 pages
Date of creation: 28 Nov 2013
Date of revision:
Publication status: Published in Hamburg Contemporary Economic Discussions, Issue 49, 2013
Handle: RePEc:hce:wpaper:049
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Web page: http://www.hced.uni-hamburg.de/
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