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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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    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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