Homevoters vs. leasevoters: a spatial analysis of airport effects

Ahlfeldt, Gabriel M. ORCID: 0000-0001-5664-3230 and Maennig, Wolfgang (2015) Homevoters vs. leasevoters: a spatial analysis of airport effects. Journal of Urban Economics, 87. pp. 85-99. ISSN 0094-1190

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Abstract

We use a public referendum on a new aviation concept in Berlin, Germany, as a natural experiment to analyze how the interaction of tenure and capitalization effects influences the outcome of direct democracy processes. We distinguish between homevoters, i.e., voters who are homeowners, and leasevoters, i.e., voters who lease their homes. We expect that homevoters would be more likely to support initiatives that positively affect the amenity value of a neighborhood because some of the related benefits of leasevoters are neutralized by adjustments in market rents. Likewise, homevoters would be more likely to oppose initiatives that negatively affect the amenity value of a neighborhood. Our empirical results are consistent with these expectations, implying that public votes on local public goods do not necessarily reflect the spatial distribution of welfare effects in mixed-tenure environments.

Item Type:	Article
Official URL:	http://www.journals.elsevier.com/journal-of-urban-...
Additional Information:	© 2015 Elsevier Inc.
Divisions:	Geography & Environment Spatial Economics Research Centre
Subjects:	H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification:	D - Microeconomics > D6 - Welfare Economics > D61 - Allocative Efficiency; Cost-Benefit Analysis D - Microeconomics > D6 - Welfare Economics > D62 - Externalities H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H71 - State and Local Taxation, Subsidies, and Revenue I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports; Gambling; Recreation; Tourism R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R58 - Regional Development Policy
Date Deposited:	09 Mar 2015 14:49
Last Modified:	12 Dec 2024 00:51
URI:	http://eprints.lse.ac.uk/id/eprint/61153

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