TABLE 1.
Characteristic Not Observed by Researcher | Relationship with Neighborhood Condition | Type of Bias |
---|---|---|
Market features | ||
Perceived future neighborhood price trajectory | Uncorrelated | Random effect |
Labor market shock* | Uncorrelated | Random effect |
Housing market shock† | Uncorrelated | Random effect |
Neighborhood features | ||
Neighborhood reputation | Positively correlated | Upward bias |
Pollution | Negatively correlated | Downward bias |
View | Positively correlated | Upward bias |
Geographic/jurisdictional features | ||
School quality | Positively correlated | Upward bias |
Ease of access to jobs/retail | Varies; depends on city geography | Varies |
Other jurisdictional amenities (e.g., health care services, city services, etc) | Varies; location specific | Varies |
Any unexpected event impacting labor markets is considered a labor market shock. Examples of labor market shocks include the closure of major employment centers, or a sharp increase in unemployment during economic recessions.
Any unexpected event impacting housing markets is considered a housing market shock. Examples of housing market shocks include a rapid increase in housing demand generated by economic growth, and a similar decrease in housing prices related to an economic recession.