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What are Private Governments Worth?

4 Pages Posted: 13 Oct 2005  

Amanda Y. Agan

Rutgers University, Department of Economics

Alexander T. Tabarrok

George Mason University - Department of Economics


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:

Amanda Y. Agan (Contact Author)

Rutgers University, Department of Economics ( email )

New Jersey Hall
75 Hamilton St
08901, NJ Princeton 08540
United States

HOME PAGE: http://

Alexander T. Tabarrok

George Mason University - Department of Economics ( email )

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

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