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Escape from the City? The Role of Race, Income, and Local Public Goods in Post-War Suburbanization

  • Leah Platt Boustan

Affluent towns often deliver high-quality public services to their residents. I estimate the willingness to pay to live in a high-income suburb, above and beyond the demand of wealthy neighbors, by measuring changes in housing prices across city-suburban borders as the income disparity between the two municipalities changes over time. I find that a $10,000 increase in town-level median income is associated with a seven percent increase in housing values at the border. The estimated demand for high-income municipalities is primarily driven by school quality and lower property tax rates.

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File URL: http://www.nber.org/papers/w13311.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13311.

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Date of creation: Aug 2007
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Publication status: published as “Was Postwar Suburbanization 'White Flight'? Evidence from the Black Migration.” Quarterly Journal of Economics, 2010.
Handle: RePEc:nbr:nberwo:13311
Note: DAE
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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