BIDs and Backyards: Estimating Spillover Effects of Business Improvement Districts on Surround Residential Properties
Hanson, Dustin T.
Business Improvement Districts (BID) have been used for over 40-years in the United States as means to breathe new life into aging urban communities. Both municipal governments and business communities benefit from the establishment of BIDS, despite their differing mandates and goals. Governments see BIDs as a mechanism to fight urban decay, as the BIDs invests in their neighborhoods through public services provision, such as litter removal or street-art installation. Businesses see BIDs as an avenue to increase their customer base, while ensuring their neighborhood is conducive to attracting future business. Although BIDs seem like a “win-win” scenario, are there any negative externalities associated with their establishment?Through difference-in-difference regression, negative externalities on the residential properties surrounding the BIDs of Washington, D.C. were found. Using the home sale prices of 57,565 residential properties, across 30-years, the estimated average reduction in home sale price was 17.18% for homes located within 500-meters of a BID. This reduction was significant in two of the eight BIDs analyzed and is statistically-significant at the 99% level.
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Lyons, Greg (Georgetown University, 2018)This thesis examines how black population proportions in urban centers vary depending on whether they are covered by special tax zones known as Business Improvement Districts (BIDs). BIDs augment publicly available amenities ...