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Title:A slab in the face: Building quality and neighborhood effects PDF Logo
Authors:Schulz, Rainer
Wersing, Martin
Issue Date:2012
Series/Report no.:SFB 649 discussion paper 2012-020
Abstract:The quality of newly constructed single-family houses is usually homogeneous in and heterogeneous between neighborhoods. Such quality-clustering will be caused by the variation of natural amenities throughout a suburban area. Clustering will be enforced if the quality of neighboring buildings increases the value of newly constructed ones. To disentangle the natural amenity e ect and the neighborhood e ect, we use data from Berlin and exploit that the endogenous e ect was weakened during the socialist period. Our results show that the exogenous variation caused by buildings constructed during this period still causes lower quality new buildings in the East of the city.
Subjects:housing supply
housing externality
natural experiment
Document Type:Working Paper
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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