We thank Gilles Duranton and the participants at the Journal of Regional Science 50th Anniversary Conference for very helpful comments and stimulating discussion.
NEIGHBORHOOD EFFECTS: ACCOMPLISHMENTS AND LOOKING BEYOND THEM*
Version of Record online: 13 JAN 2010
© 2010, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 50, Issue 1, pages 343–362, February 2010
How to Cite
Ioannides, Y. M. and Topa, G. (2010), NEIGHBORHOOD EFFECTS: ACCOMPLISHMENTS AND LOOKING BEYOND THEM. Journal of Regional Science, 50: 343–362. doi: 10.1111/j.1467-9787.2009.00638.x
- Issue online: 3 FEB 2010
- Version of Record online: 13 JAN 2010
- Received: April 2009; revised: June 2009; accepted: June 2009.
ABSTRACT The paper addresses the empirical significance of the social context in economic decisions. Decisions of individuals who share spatial and social milieus are likely to be interdependent, and econometric identification of social effects poses intricate data and methodological problems, including dealing with self-selection in spatial and social groups. It uses a simple empirical framework to introduce social interactions effects at different levels of aggregation, and examines estimation problems in linear models, the impact of self-selection and of nonlinearities. It also examines neighborhood effects in job matching and proposes a research agenda that offers new techniques and data sources.