The provision of new subsidized housing projects presents an effective solution for alleviating the significant housing deficit in developing countries. However, limited knowledge exists regarding how these housing projects impact the quality of the surrounding environment, particularly when...

This paper studies neighborhood effects using a dynamic general equilibrium model. Households choose where to live and how much to invest in their child's human capital. The return on parents' investment is determined in part by their child's ability and in part by a neighborhood externality. We...