In this paper, we estimate a model of housing demand with neighbourhood effects. We exploit special features of the national sample of the American Housing Survey and properties of housing markets that allow us to create 'natural' instruments and therefore identify the impact of social...

This paper contributes to the growing literature that aims at identifying and measuring the impact of social context on individual economic behavior. We develop a model of housing structure demand with neighborhood effects and neighborhood choice. Modeling neighborhood choice is of fundamental...