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Does Government Investment in Local Public Goods Spur Gentrification? Evidence from Beijing

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  • Siqi Zheng
  • Matthew E. Kahn

Abstract

In Beijing, the metropolitan government has made enormous place based investments to increase green space and to improve public transit. We examine the gentrification consequences of such public investments. Using unique geocoded real estate and restaurant data, we document that the construction of the Olympic Village and two recent major subway systems have led to increased new housing supply in the vicinity of these areas, higher local prices and an increased quantity of nearby private chain restaurants.

Suggested Citation

  • Siqi Zheng & Matthew E. Kahn, 2011. "Does Government Investment in Local Public Goods Spur Gentrification? Evidence from Beijing," NBER Working Papers 17002, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17002
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    References listed on IDEAS

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    1. Edward L. Glaeser, Jed Kolko, and Albert Saiz, 2001. "Consumer city," Journal of Economic Geography, Oxford University Press, vol. 1(1), pages 27-50, January.
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    5. Guerrieri, Veronica & Hartley, Daniel & Hurst, Erik, 2013. "Endogenous gentrification and housing price dynamics," Journal of Public Economics, Elsevier, vol. 100(C), pages 45-60.
    6. Zheng, Siqi & Kahn, Matthew E., 2008. "Land and residential property markets in a booming economy: New evidence from Beijing," Journal of Urban Economics, Elsevier, vol. 63(2), pages 743-757, March.
    7. Waldfogel, Joel, 2008. "The median voter and the median consumer: Local private goods and population composition," Journal of Urban Economics, Elsevier, vol. 63(2), pages 567-582, March.
    8. repec:rim:rimwps:36-08 is not listed on IDEAS
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Building Green Cities Using Public/Private Partnerships
      by Matthew E. Kahn in Environmental and Urban Economics on 2012-01-28 22:28:00
    2. China's Future Green Cities
      by Matthew E. Kahn in Environmental and Urban Economics on 2011-12-02 22:10:00
    3. Electric Vehicle Demand and Public Recharging Stations: Solving a "Catch-22"
      by Matthew E. Kahn in Environmental and Urban Economics on 2012-03-24 21:34:00
    4. Urbanization and Economic Development
      by Matthew E. Kahn in Environmental and Urban Economics on 2012-06-11 03:13:00
    5. Listen to a Podcast of the Nevada NPR Radio Show on Climate Change Adaptation for Southwest Cities
      by Matthew Kahn in Environmental and Urban Economics on 2012-08-14 03:14:00
    6. Mega-Infrastructure Projects in LDC Cities
      by Matthew E. Kahn in The Reality-Based Community on 2013-01-02 22:04:55
    7. High Speed Rail Versus Austerity
      by Matthew E. Kahn in HBR Blog Network on 2013-04-08 17:00:55
    8. My Harvard Business Review Blog Piece on China's Bullet Trains and a History of My Economic Thought About China
      by Matthew Kahn in Environmental and Urban Economics on 2013-04-08 20:50:00
    9. Exploring Green Cities in China
      by Matthew Kahn in Urbanization Project on 2013-04-10 04:17:09

    Citations

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    Cited by:

    1. Zheng, Siqi & Xu, Yangfei & Zhang, Xiaonan & Wang, Rui, 2016. "Transit development, consumer amenities and home values: Evidence from Beijing's subway neighborhoods," Journal of Housing Economics, Elsevier, vol. 33(C), pages 22-33.
    2. Guerrieri, Veronica & Hartley, Daniel & Hurst, Erik, 2013. "Endogenous gentrification and housing price dynamics," Journal of Public Economics, Elsevier, vol. 100(C), pages 45-60.
    3. Zheng, Siqi & Hu, Xiaoke & Wang, Jianghao & Wang, Rui, 2016. "Subways near the subway: Rail transit and neighborhood catering businesses in Beijing," Transport Policy, Elsevier, vol. 51(C), pages 81-92.
    4. Yue Zhang & Robert G. Cromley & Dean M. Hanink, 2016. "A spatial hedonic model application of variance function regression to residential property prices in Beijing," Letters in Spatial and Resource Sciences, Springer, vol. 9(1), pages 93-101, March.
    5. Agarwal, Sumit & Koo, Kang Mo & Sing, Tien Foo, 2015. "Impact of electronic road pricing on real estate prices in Singapore," Journal of Urban Economics, Elsevier, vol. 90(C), pages 50-59.
    6. Hanming Fang & Quanlin Gu & Li-An Zhou, 2014. "The Gradients of Power: Evidence from the Chinese Housing Market," NBER Working Papers 20317, National Bureau of Economic Research, Inc.
    7. repec:tpr:restat:v:99:y:2017:i:4:p:663-677 is not listed on IDEAS
    8. Seungwoo Chin & Matthew E. Kahn & Hyungsik Roger Moon, 2017. "Estimating the Gains from New Rail Transit Investment: A Machine Learning Tree Approach," NBER Working Papers 23326, National Bureau of Economic Research, Inc.
    9. Wenjie Wu & Guanpeng Dong & Bing Wang, 2015. "Does Planning Matter? Effects on Land Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 50(2), pages 242-269, February.
    10. Jan K. Brueckner & Shihe Fu & Yizhen Gu & Junfu Zhang, 2017. "Measuring the Stringency of Land Use Regulation: The Case of China's Building Height Limits," The Review of Economics and Statistics, MIT Press, vol. 99(4), pages 663-677, July.
    11. Wu, Wenjie & Wang, Jianghao & Li, Chengyu & Wang, Mark, 2016. "The geography of city liveliness and consumption: evidence from location-based big data," LSE Research Online Documents on Economics 83642, London School of Economics and Political Science, LSE Library.
    12. Chengyu Li & Mark Wang & Jianghao Wang & Wenjie Wu, 2016. "The Geography of City Liveliness and Land Use Configurations: Evidence from Location-Based Big Data in Beijing," SERC Discussion Papers 0201, Spatial Economics Research Centre, LSE.
    13. Zhang, Min & Partridge, Mark & Song, Huasheng, 2018. "Amenities and Geography of Innovation: Evidence from Chinese Cities," MPRA Paper 83673, University Library of Munich, Germany.
    14. Siqi Zheng & Matthew E. Kahn, 2013. "Understanding China's Urban Pollution Dynamics," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 731-772, September.
    15. Anping Chen & Marlon Boarnet & Mark Partridge & Siqi Zheng & Weizeng Sun & Rui Wang, 2014. "Land Supply And Capitalization Of Public Goods In Housing Prices: Evidence From Beijing," Journal of Regional Science, Wiley Blackwell, vol. 54(4), pages 550-568, September.
    16. Wang, Yiming & Feng, Suwei & Deng, Zhongwei & Cheng, Shuangyu, 2016. "Transit premium and rent segmentation: A spatial quantile hedonic analysis of Shanghai Metro," Transport Policy, Elsevier, vol. 51(C), pages 61-69.
    17. Sun, Weizeng & Zheng, Siqi & Wang, Rui, 2015. "The capitalization of subway access in home value: A repeat-rentals model with supply constraints in Beijing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 104-115.
    18. Devin Bunten & Matthew E. Kahn, 2014. "The Impact of Emerging Climate Risks on Urban Real Estate Price Dynamics," NBER Working Papers 20018, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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