Question

Suppose that you have data on housing prices, geography, and population characteristics in different communities over time. You also observe the communities in which large factories are built. You also know the communities that were the runners up to the places that built the factories (e.g. a factory is built in Cleveland and the runner up was Akron). How could you identify the effect of a factory being built in a community of housing prices? What would you need to assume? How could you assess the plausibility of this assumption?

Answer 1

The effect of factory being built in a community of housing prices tend to have a much greater impact – a negative one – on your home values. A couple of prime examples of commercial property that impacts property values of a neighborhood positively would be lively nightlife venues, art galleries, or coffee shops. Reports have shown that a smaller, neighborhood movie theater, just as an example, can increase a home’s property value.

And industrial development is very much bigger devolopment than these shorter ones.Within 60 years of Cleveland's founding, industry, especially the making of iron and its products, began to dominate the economy of the city and its vicinity. To a large degree, Cleveland's growth has been determined by its industrial base. The term industry in its economic and technical sense refers to the organized production of goods for the market.

Incineration plants and derelict industrial sites can have a number of adverse effects on the local environment and social welfare, including diminution of property values.