Gibbons, Stephen 
ORCID: 0000-0002-2871-8562
(2003)
Paying for good neighbours: estimating the value of an implied educated community.
Urban Studies, 40 (4).
pp. 809-833.
ISSN 0042-0980
Abstract
By definition, spillovers across households in residential communities mean that people incur costs from living in neighbourhoods where a high proportion of households suffer deprivation, regardless of their own economic circumstances. To verify the existence of intracommunity spillovers, this paper shows that home-owners in England and Wales are prepared to pay a substantial premium to avoid educationally poor neighbourhoods. An increase of 1 per cent in the proportion of higher-educated residents in a community, relative to the regional mean, increases prices by 0.24 per cent. One interpretation of this educational elasticity is that it estimates the social benefits of education in the local community. A hedonic approach is used, paying careful attention to the endogeneity of neighbourhood characteristics in a property price model.
| Item Type: | Article |
|---|---|
| Official URL: | http://usj.sagepub.com/ |
| Additional Information: | © 2003 SAGE publications |
| Divisions: | Centre for Economic Performance Geography & Environment |
| Subjects: | G Geography. Anthropology. Recreation > G Geography (General) |
| Date Deposited: | 14 Jul 2008 16:39 |
| Last Modified: | 01 Nov 2024 05:15 |
| URI: | http://eprints.lse.ac.uk/id/eprint/19296 |
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