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Do cultural districts spur urban revitalization: Evidence from Louisiana

Author

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  • Portillo, Javier E.
  • Wagner, Gary A.
Abstract
In the past two decades, cultural districts have become a popular instrument to encourage urban revitalization. Districts typically receive support such as grants, investments, or tax credits and, in this sense, are a variation of place-based economic development policies. In this paper, we examine the effect of state-designated cultural districts on transaction-level residential real estate prices in the metropolitan region of Lafayette, Louisiana. Using a difference-in-differences identification strategy that adjusts for staggered treatment timing, we find that residential properties within districts sell for 7% more after certification relative to nearby comparison group properties. The results are robust to extreme sale prices, alternative samples, and recently developed randomization inference techniques. Our results add to the literature showing that place-based policies can spur economic revitalization if they are carefully targeted toward amenities that residents value.

Suggested Citation

  • Portillo, Javier E. & Wagner, Gary A., 2021. "Do cultural districts spur urban revitalization: Evidence from Louisiana," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 651-673.
    • Handle: RePEc:eee:jeborg:v:188:y:2021:i:c:p:651-673
    DOI: 10.1016/j.jebo.2021.05.039
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    2. Haibo Chen & Jiawei Lu, 2023. "Does Cultural Agglomeration Affect Green Total Factor Productivity? Evidence from 279 Cities in China," Sustainability, MDPI, vol. 15(9), pages 1-23, April.

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    More about this item

    Keywords

    Cultural districts; Real estate; Housing market; Difference-in-differences;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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