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The external effects of inner‐city shopping centers: Evidence from the Netherlands
Author(s) -
Zhang Song,
Duijn Mark,
Vlist Arno J.
Publication year - 2020
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12473
Subject(s) - redevelopment , center (category theory) , urban regeneration , space (punctuation) , property (philosophy) , significant difference , business , difference in differences , advertising , economics , geography , econometrics , mathematics , civil engineering , engineering , computer science , environmental planning , statistics , chemistry , philosophy , epistemology , crystallography , operating system
Shopping center redevelopment is inevitable to remain attractive for consumers. In this paper, we investigate the external effects of shopping center redevelopment on nearby residential property prices. Using a difference‐in‐difference empirical framework, we find the redevelopment has positive external effects on nearby property prices. We find the price of a property located next to a redeveloped shopping center increases by 1.43% on average just after redevelopment. Our results indicate that these positive external effects wear off rather rapidly across space and over time. This suggests that shopping center redevelopment plays a substantial, but limited, role in combating neighborhood deprivation.