Neighborhoods and Urban Dynamics (1)
Paper Session
Friday, Jan. 3, 2025 8:00 AM - 10:00 AM (PST)
- Chair: Stephanie Moulton, Ohio State University
The Variety of Nontradable Consumption Amenities and Local Firm Productivity: Evidence from Restaurants
Abstract
Understanding the relationship between local nontradable amenities and productivity has traditionally relied on cross-city analyses and has focused on the quantity of amenities. This paper investigates the causal impact of nearby diverse nontradable amenities, particularly restaurant variety, on firms’ total factor productivity (TFP) in Beijing. We propose an instrument variable strategy for causal inference based on China's prevailing presale housing system. Our findings uncover a 4.9% increase in firm-level TFP associated with a one-standard-deviation rise in restaurant variety in firms' immediate vicinity. The main channels at work include increased face-to-face interactions, a more skilled workforce, improved employee well-being, and heightened innovation intensity. The effects are notably larger for non-state-owned enterprises, labor-intensive firms, and firms with high commuting costs. Our findings highlight the crucial role of local consumption amenity diversity in determining urban productivity, even at fine spatial scales.Urban Sprawl and Residential Carbon Emissions: Evidence from Indonesian Cities
Abstract
This paper uses detailed data from Indonesian cities to study how variation in density within ur- ban areas affects residential carbon emissions. To address simultaneity, we instrument density with soil characteristics, and to address sorting, we control for community averages of observed character- istics. Preliminary results suggest that while density is positively associated with greater residential carbon emissions, this correlation is driven by income sorting. This suggests that policies aiming to control urban sprawl may not be successful in reducing residential carbon emissions.Unequal Access to Affordability: Exclusionary Condominium and Cooperatives in New York City
Abstract
This paper investigates the impact of condominium associations and cooperative boards (HOA) on residential sorting and racial segregation in New York City. I construct a novel HOA Screening Index measuring the degree of HOA control and selection over their prospective close neighbors, based on textual data on HOA boards requirement and policies. In the reduced form patterns, I document that black, hispanic and asian condo/coop buyers are less likely to get access to properties with stringent HOA screening policies. To pass the financial screen, minorities are 15% more likely to purchase by cash and need to earn 10% higher income than white owners. The racial disparities can be traced back to historical exclusionary institutions, delineated using redlining maps. I develop a residential location choice model that incorporates rich heterogeneity to disentangle the income/wealth and racial segregation effect of HOA. The model shows that HOA screening policies intensify income and wealth sorting, disproportionately affecting minorities with a more pronounced distortion effect.Discussant(s)
Gary Painter
,
University of Cincinnati
Yichen Su
,
Southern Methodist University
Nitzan Tzur Ilan
,
Federal Reserve Bank of Dallas
Ron Cheung
,
Oberlin College
JEL Classifications
- R0 - General