Unlocking Amenities: Estimating Public-Good Complementarity
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.
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Document Object Identifier (DOI): 10.3386/w25107