Abstract
Abstract Affordable housing projects may affect neighboring property values. Negative spillovers are more likely in developing countries because governments may fail to provide complementary infrastructures such as schools. We study one of the world’s largest affordable housing projects, the Mehr housing project in Iran, which facilitated the construction of 2 million affordable apartments. Using the universe of house transactions in nineteen large cities, we employ a difference-in-differences methodology to estimate the causal impact of Mehr on neighboring properties. Results show nearby housing prices fall by 11%. This negative effect fades away in neighborhoods that saw a proportionate expansion of schools.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.