Neighbourhood Measures: Quantifying the Effects of Neighbourhood Externalities
Ben Jensen and
Mark Harris ()
Additional contact information
Ben Jensen: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne
Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne
In recent years, analyses of neighbourhood externalities have grown with the perceived importance of their influence upon outcomes. Despite this growth, a clear understanding of the role of neighbourhoods in determining outcomes remains elusive. Various attempts have been made to quantify the role of neighbourhoods and limit problems of misspecification that have plagued this literature. Recent research suggests that neighbourhood proxies that measure characteristics similar to the dependent variable may better capture neighbourhood externalities. We explore variation in estimations including distinct neighbourhood proxies by estimating the influence of neighbourhood externalities upon youths' education expectations. Misspecification tests for normality and heteroscedasticity show particular neighbourhood proxies are more susceptible to misspecification. Monte-Carlo experiments show these neighbourhood proxies are also more likely to produce biased estimates if particular family characteristics are not fully captured. We find estimations including neighbourhood proxies measuring characteristics proximate to youths' education are less likely to suffer misspecifications. We also find that different geographic definitions of neighbourhoods can lead to erroneous findings, particularly considering variation in school quality.
New Economics Papers: this item is included in nep-cmp, nep-geo and nep-ure
References: Add references at CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://melbourneinstitute.unimelb.edu.au/downloads ... series/wp2004n03.pdf (application/pdf)
Journal Article: Neighbourhood Measures: Quantifying the Effects of Neighbourhood Externalities (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2003n04
Access Statistics for this paper
More papers in Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Sheri Carnegie ().