New housing supply and the dilution of social capital

Christian Hilber

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper examines the role of local housing market conditions for social capital accumulation and neighborhood club good provision. A model of individual investment decisions predicts that in a setting with high property transaction costs (i) homeowners are more likely to invest in social capital than renters and (ii) the positive link between homeownership and social capital is stronger in more built-up neighborhoods with inelastic supply of new housing. In these neighborhoods homeowners are largely protected from inflows of newcomers that would dilute the net benefit from social capital in the longer run. Empirical evidence from the Social Capital Community Benchmark Survey confirms the model predictions. Instrumental variable estimates suggest that the effects are causal.

Keywords: House price capitalization; social capital; homeownership; land and housing supply; neighborhood club goods. (search for similar items in EconPapers)
JEL-codes: D71 R21 R31 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2007-08
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://eprints.lse.ac.uk/3573/ Open access version. (application/pdf)

Related works:
Journal Article: New housing supply and the dilution of social capital (2010)
Working Paper: New Housing Supply and the Dilution of Social Capital (2010)
Working Paper: New Housing Supply and the Dilution of Social Capital (2008)
Working Paper: New Housing Supply and the Dilution of Social Capital (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:3573

Access Statistics for this paper

More papers in LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library LSE Library Portugal Street London, WC2A 2HD, U.K.. Contact information at EDIRC.
Bibliographic data for series maintained by LSERO Manager ().