Does Government Investment in Local Public Goods Spur Gentrification? Evidence from Beijing

28 Pages Posted: 26 Feb 2013

See all articles by Siqi Zheng

Siqi Zheng

Hang Lung Center for Real Estate, Tsinghua University

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: Spring 2013

Abstract

In Beijing, the metropolitan government has made enormous place‐based investments to increase green space and to improve public transit. We examine the gentrification consequences of such public investments. Using unique geocoded real estate, new restaurant count data and demographic data by neighborhood, we document that the construction of the Olympic Village and two recent major subway systems have led to increased new housing supply in the vicinity of these areas, higher local prices and an increased quantity of nearby private chain restaurants. Recent time trends in local resident income and human capital attainment support the claim that these investments have caused local gentrification.

Suggested Citation

Zheng, Siqi and Kahn, Matthew E., Does Government Investment in Local Public Goods Spur Gentrification? Evidence from Beijing (Spring 2013). Real Estate Economics, Vol. 41, Issue 1, pp. 1-28, 2013. Available at SSRN: https://ssrn.com/abstract=2224504 or http://dx.doi.org/10.1111/j.1540-6229.2012.00339.x

Siqi Zheng

Hang Lung Center for Real Estate, Tsinghua University ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://www.siqizheng.cn

Matthew E. Kahn

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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