Assessing the Economic Value of Neighborhood Self-Governance

37 Pages Posted: 27 Aug 2013

Date Written: 2013

Abstract

Much recent literature suggests that promoting social capital and neighborhood organization may be an effective means to stabilize and improve quality of life in some urban neighborhoods (e.g. Sampson 2012). This paper analyzes a hedonic price model of sales prices of residential property in the city of Little Rock from 2007 – 2012 using geocoded data obtained from the Pulaski County tax assessor’s office. We use this model to test for the impact of three types of neighborhood governance on property values: an active homeowners’ association, an active voluntary neighborhood association, and no formal governance. We find no evidence that either voluntary neighborhood associations or property owners associations increase property values. This could indicate that these institutional forms lack institutional robustness compared to governmental arrangements for serving neighborhoods. In particular, in some cities the boundaries for these associations may not correspond to the boundaries relevant to homeowners and homebuyers.

Keywords: Neighborhood organization, capitalization, hedonic model

Suggested Citation

Craw, Michael, Assessing the Economic Value of Neighborhood Self-Governance (2013). APSA 2013 Annual Meeting Paper, American Political Science Association 2013 Annual Meeting, Available at SSRN: https://ssrn.com/abstract=2300680

Michael Craw (Contact Author)

School of Public Affairs ( email )

University of Arkansas at Little Rock
2801 S. University Avenue
Little Rock, AR 72204
United States
(501) 569-3402 (Phone)

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