University of Illinois
Department of Economics
Institutional Affiliation: University of Illinois
NBER Working Papers and Publications
|September 2018||Unlocking Amenities: Estimating Public-Good Complementarity|
with David Albouy, Peter Christensen: w25107
Our results indicate that improving safety near parks can turn them from public bads to goods. Ignoring complementarities may lead to i) undervaluing the potential value of public goods; ii) overestimating heterogeneity in preferences; and iii) understating the value of public goods to low income households. Recent reductions in crime have “unlocked” $3 billion in property value in these three cities. Still over half of the potential value of park proximity (approximately $9 billion) remains locked in.