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The Economic Effects of Slum Clearance and Urban Renewal in the United States

  • William J. Collins

    ()

    (Department of Economics, Vanderbilt University)

  • Katharine Shester

    ()

    (Department of Economics, Vanderbilt University)

The Housing Act of 1949 established a federally subsidized program that helped cities clear areas of existing buildings for redevelopment, rehabilitate deteriorating structures, complete comprehensive city plans, and enforce building codes. The program ended in 1974, but not before financing over 2,100 urban renewal projects and generating great controversy. We use an instrumental variable strategy to estimate the program�s effects on city-level outcomes. The estimates are generally positive and economically significant and are not driven by differential changes in cities� demographic composition. We caution that the results do not imply that the program was an equitable or optimal approach to dealing with central-city problems.

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File URL: http://www.accessecon.com/pubs/VUECON/vu10-w13.pdf
File Function: First version, October 2010
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Paper provided by Vanderbilt University Department of Economics in its series Vanderbilt University Department of Economics Working Papers with number 1013.

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Date of creation: Oct 2010
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Handle: RePEc:van:wpaper:1013
Contact details of provider: Web page: http://www.vanderbilt.edu/econ/wparchive/index.html

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  1. John Bound & Harry J. Holzer, 1996. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," NBER Working Papers 5685, National Bureau of Economic Research, Inc.
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  5. Edward L. Glaeser & Joshua D. Gottlieb, 2008. "The Economics of Place-Making Policies," NBER Working Papers 14373, National Bureau of Economic Research, Inc.
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  7. 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, 06.
  8. Collins, William J. & Margo, Robert A., 2000. "Residential segregation and socioeconomic outcomes: When did ghettos go bad?," Economics Letters, Elsevier, vol. 69(2), pages 239-243, November.
  9. Brueckner, Jan K. & Helsley, Robert W., 2011. "Sprawl and blight," Journal of Urban Economics, Elsevier, vol. 69(2), pages 205-213, March.
  10. David Albouy, 2009. "What Are Cities Worth? Land Rents, Local Productivity, and the Capitalization of Amenity Values," NBER Working Papers 14981, National Bureau of Economic Research, Inc.
  11. Michael Greenstone & Richard Hornbeck & Enrico Moretti, 2008. "Identifying Agglomeration Spillovers: Evidence from Million Dollar Plants," NBER Working Papers 13833, National Bureau of Economic Research, Inc.
  12. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
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