The Value Homeowners Place On Neighborhood Local Public Goods

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The goal of my research is investigate differences in the value homeowners place on neighborhood local public goods. I define local public goods as either non-excludable or non-rivalrous neighborhood amenities such as open space, school quality, and public transportation, and disamenities such as crime. Previous research has focused on estimating the average value or willingness to pay for these types of goods. However, just as most preferences can vary by income level, so can the preferences for local public goods. From a public policy persepctive it is important to understand this heterogeneity so that local governments can better serve their residents. For example, if low income households value public transportation more than the…show more content…
Assuming higher income households purchase more expensive homes, we can anaylze how preferences for different public goods vary by income. I have acquired data on neighborhood amenities and disamenities from several sources. This fellowship would allow me to purchase even more detailed data on open space, nearby public infrastructure and amenities, and crime rates. It would also allow me to focus more of my time in geocoding houses, open space, roadways, crime, and census data to get more precise measures of local public goods and account for any spatial correlation between houses. For several decades researchers have used hedonic theory to estimate the effect of various local public goods on house prices. These studies have examined the value households place on a countless number of neighborhood amenities and disamenities, including open space, school quality, crime, air quality, and nearby public infrastructure. Understanding households ' willingness to pay is paramount for local governments, city planners, and policymakers in determining the optimal provision of various public goods and services. A quick survey of the hedonic literature finds that the effects of certain public goods on housing prices often vary in their significance, magnitude and direction. In fact, cite{sirmans2005composition} review over
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