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Author Autor, David H

Title Housing market spillovers : evidence from the end of rent control in Cambridge, Massachusetts / David H. Autor, Christopher J. Palmer, Parag A. Pathak
Published Cambridge, Mass. : National Bureau of Economic Research, ©2012
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Description 1 online resource (34, [22], x pages) : illustrations, map
Series NBER working paper series ; no. 18125
Working paper series (National Bureau of Economic Research) ; no. 18125
Summary Understanding potential spillovers from the attributes and actions of neighborhood residents onto the value of surrounding properties and neighborhoods is central to both the theory of urban economics and the development of efficient housing policy. This paper measures the capitalization of housing market spillovers by studying the sudden and largely unanticipated 1995 elimination of stringent rent controls in Cambridge, Massachusetts that had previously muted landlords' investment incentives and altered the assignment of residents to locations. Pooling administrative data on the assessed values of each residential property and the prices and characteristics of all residential transactions between 1988 and 2005, we find that rent control's removal produced large, positive, and robust spillovers onto the price of never-controlled housing from nearby decontrolled units. Elimination of rent control added about $1.8 billion to the value of Cambridge's housing stock between 1994 and 2004, equal to nearly a quarter of total Cambridge residential price appreciation in this period. Positive spillovers to never-controlled properties account for more half of the induced price appreciation. Residential investments can explain only a small fraction of the total
Bibliography Includes bibliographical references (pages 32-34)
Subject Housing policy -- Economic aspects -- United States -- Econometric models
Land use -- Massachusetts -- Econometric models
Urban economics -- Econometric models
Land use -- Econometric models.
Urban economics -- Econometric models.
Massachusetts.
United States.
Form Electronic book
Author Palmer, Christopher J
Pathak, Parag A
National Bureau of Economic Research