کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
984037 | 934121 | 2011 | 13 صفحه PDF | دانلود رایگان |
We explore the impact of central government grants on local house prices in England using a panel data set of local authorities (LAs) from 2001 to 2008. Electoral targeting of grants to LAs by the incumbent national government provides an exogenous source of variation in grants that we exploit to identify their causal effect on house prices. Our results indicate substantial or even full capitalization. We also find that house prices respond more strongly in locations in which new construction is constrained by physical barriers. Our results imply that (i) during our sample period grants were largely used in a way that is valued by the marginal homebuyer and (ii) increases in grants to an LA may mainly benefit the typically better off property owners (homeowners and absentee landlords) in that LA.
Journal: Regional Science and Urban Economics - Volume 41, Issue 4, July 2011, Pages 394–406