New Housing Supply and the Dilution of Social Capital

Christian Hilber

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the role of local housing supply conditions for social capital investment. Using an instrumental variables approach and data from the Social Capital Community Benchmark Survey, it is documented that the positive link between homeownership and individual social capital investment is largely confined to more built-up neighborhoods (with more inelastic supply of new housing). The empirical findings provide support for the proposition that in these localities house price capitalization provides additional incentives for homeowners to invest in social capital. The findings are also largely consistent with the proposition that built-up neighborhoods provide protection from inflows of newcomers that could upset a mutually beneficial equilibrium involving reciprocal cooperation. However, the results do not appear to be driven by selection based on inherent differences in social aptitudes or by Tiebout sorting.

Keywords: House price capitalization; social capital; homeownership; land and housing supply; reciprocal cooperation (search for similar items in EconPapers)
JEL-codes: D71 R21 R31 (search for similar items in EconPapers)
Date: 2007-08-02, Revised 2008-11-14
New Economics Papers: this item is included in nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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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 (2007)
Working Paper: New Housing Supply and the Dilution of Social Capital (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11620

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