Weiran Huang, Ashlyn Aiko Nelson, Stephen Ross, 01 February 2019

Heavily depressed housing prices and high contemporaneous rates of foreclosure have been observed in many low-income and minority neighbourhoods in US cities, suggesting foreclosures may have spillover effects within neighbourhoods. This column demonstrates that foreclosures affect the price of nearby homes and the risk of foreclosure on those homes. While our understanding of the aggregate impact of these spillovers is still limited, recent evidence suggests that it could be large. 

Matthew Lindquist, Joeri Sol, Mirjam van Praag, Theodor Vladasel, 02 December 2016

Policies aimed at encouraging entrepreneurship are popular around the world, but a recent literature suggests that entrepreneurship might be more predetermined than previously thought. This column uses sibling correlations to tease apart the importance of genes, family background, and neighbourhood effects for later entrepreneurship. Parental entrepreneurship and genes are the two main drivers of sibling similarities in entrepreneurship. However, children do appear to be able to learn about entrepreneurship through their family and community, so it may be possible to teach relevant skills to young people.

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