Unlocking amenities: Estimating public good complementarity

• 成果类型: Article
• 署名作者: Albouy, David; Christensen, Peter; Sarmiento-Barbieri, Ignacio
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; National Bureau of Economic Research; University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2019.104110
• 发表日期: 2020
• 关键词: Public goods; complements; Amenities; crime; Environmental amenities; parks; urban development

摘要

Public goods may exhibit complementarities that are essential for determining their individual value. Our results indicate that improving safety near parks can turn them from public bads to goods. Ignoring complementarities may lead to i) undervaluing the potential value of public goods: ii) overestimating heterogeneity in preferences: and iii) understating the value of public goods to minority households. Recent reductions in crime have unlocked almost $7 billion in property value in Chicago, New York and Philadelphia. Still, two-fifths of the potential value of park proximity, $10 billion, remains locked-in. (C) 2019 Elsevier B.V. All rights reserved.