What are Private Governments Worth?

4 Pages Posted: 13 Oct 2005  

Amanda Y. Agan

Princeton University - Department of Economics

Alexander T. Tabarrok

George Mason University - Department of Economics

Abstract

Homeowners associations (HOAs) and other local private governments are expanding in number both in the United States and around the world. Local private governments are also expanding in scope, with many offering private security and a few even offering services such as day care, schools, and local courts to arbitrate homeowner disputes. How valuable are those services to association-members? Our data indicate that houses in HOAs in Northern Virginia are worth, on average, more than 5 percent more than similar houses in the same neighborhood but outside of HOAs. Given those large advantages, it is not surprising that HOAs are growing rapidly.

Keywords: Homeowners associations, HOAs, private governments, private security, associations, private associations

JEL Classification: L85, R21, R31

Suggested Citation

Agan, Amanda Y. and Tabarrok, Alexander T., What are Private Governments Worth?. Regulation, Vol. 28, No. 3, pp. 14-17, Fall 2005. Available at SSRN: https://ssrn.com/abstract=820444

Amanda Y. Agan (Contact Author)

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Alexander T. Tabarrok

George Mason University - Department of Economics ( email )

MSN 1D3
4400 University Drive
Fairfax, VA 22030
United States
703-993-2314 (Phone)

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