Safe and Satisfied? External Effects of Homeownership in Rotterdam

39 Pages Posted: 20 May 2011 Last revised: 18 Dec 2013

See all articles by Ruben Cox

Ruben Cox

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Dirk Brounen

Erasmus University Rotterdam (EUR) - Department of Financial Management; Erasmus Research Institute of Management (ERIM); Tinbergen Institute

Peter Neuteboom

Erasmus University Rotterdam (EUR) - Department of Financial Management

Date Written: August 1, 2011

Abstract

We analyse the impact of homeownership on neighbourhood safety and neighbourhood satisfaction, using a unique panel dataset for the city of Rotterdam. Our results show that there are significant, but economically small, effects of homeownership on safety and satisfaction. Moreover, the relation between ownership and satisfaction is significantly moderated by neighbourhood safety. We examine whether the marginal impact of increases in homeownership on external effects diminish once ownership levels are higher. According to our data this seems to be the case. The results are robust to alternative specifications. Our findings provide insights for the evaluation of housing market policies that subsidise or stimulate homeownership.

Keywords: neighbourhood effects, homeownership, residential satisfaction, safety

JEL Classification: R23, R28, R30, R38

Suggested Citation

Cox, Ruben and Brounen, Dirk and Neuteboom, Peter, Safe and Satisfied? External Effects of Homeownership in Rotterdam (August 1, 2011). Urban Studies, 49(12), 2669-2691. Available at SSRN: https://ssrn.com/abstract=1846316

Ruben Cox (Contact Author)

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands
+31 (0) 10 4088929 (Phone)

Dirk Brounen

Erasmus University Rotterdam (EUR) - Department of Financial Management ( email )

P.O. Box 1738
Room T09-53
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands
+31 1 0408 2371 (Phone)
+31 1 0408 9017 (Fax)

HOME PAGE: http://web.eur.nl/fbk/dep/dep5/faculty/dbrounen

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands
120-551-3535 (Phone)

Peter Neuteboom

Erasmus University Rotterdam (EUR) - Department of Financial Management ( email )

PO Box 1738
Rotterdam, 3000 DR
Netherlands

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