Estimating Neighborhood Effects: Evidence from War-time Destruction in London

Stephen Redding and Daniel Daniel
Additional contact information
Daniel Daniel: London School of Economics

Working Papers from Princeton University. Economics Department.

Abstract: We use Second World War destruction in London as a natural experiment to provide evidence on neighborhood effects. We use a newly-collected and remarkable dataset on thousands of locations within London that records wartime destruction and the economic and social characteristics of locations from the late nineteenth to late-twentieth centuries. We combine these data with a quantitative model of the sorting of heterogeneous groups of agents across locations that differ in productivity, amenities and transport infrastructure. We find that both own and neighbors' destruction affect patterns of spatial sorting and that the effects of neighbors' destruction are highly localized (0-200 meters). These findings provide evidence for spatial sorting as a mechanism through which neighborhood effects occur.

Keywords: Agglomeration Economies; Cities; Neighborhood effects; Second World War (search for similar items in EconPapers)
JEL-codes: F16 N9 R23 (search for similar items in EconPapers)
Date: 2016-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.princeton.edu/~reddings/papers/LWW2-9Mar16.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
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:pri:econom:2016-6

Access Statistics for this paper

More papers in Working Papers from Princeton University. Economics Department. Contact information at EDIRC.
Bibliographic data for series maintained by Bobray Bordelon ().