A number of prominent studies examine the long-run effects of neighborhood attributes on children by leveraging … variation in neighborhood exposure through household moves. How-ever, much neighborhood change comes in place rather than … neighborhood attributes on long-run outcomes for incumbent children and households. For identification, we make use of quasi …

or inefficient outcome will prevail. We performed an experiment with human subjects exploring how free neighborhood … inefficient outcome. In a treatment with neighborhood choice, the outcome is dramatically different: behavior quickly converges to … the socially desirable outcome leading to welfare gains 2.5 times higher than in the environment without neighborhood …