New housing supply and the dilution of social capital

Hilber, Christian A. L. ORCID: 0000-0002-1352-495X (2007) New housing supply and the dilution of social capital. . Geography and Environment, London School of Economics and Political Science, London, UK.

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Abstract

This paper examines the role of local housing market conditions for social capital accumulation and neighborhood club good provision. A model of individual investment decisions predicts that in a setting with high property transaction costs (i) homeowners are more likely to invest in social capital than renters and (ii) the positive link between homeownership and social capital is stronger in more built-up neighborhoods with inelastic supply of new housing. In these neighborhoods homeowners are largely protected from inflows of newcomers that would dilute the net benefit from social capital in the longer run. Empirical evidence from the Social Capital Community Benchmark Survey confirms the model predictions. Instrumental variable estimates suggest that the effects are causal.

Item Type:	Monograph (Working Paper)
Official URL:	http://www.lse.ac.uk/collections/geographyAndEnvir...
Additional Information:	© 2007 Christian A. L. Hilber
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HD Industries. Land use. Labor
JEL classification:	R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R31 - Housing Supply and Markets R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R21 - Housing Demand D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice; Clubs; Committees; Associations
Date Deposited:	18 Apr 2008 10:16
Last Modified:	11 Dec 2024 18:50
URI:	http://eprints.lse.ac.uk/id/eprint/3573

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