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The Cost Of The Culturati: Studying The Neighborhood Stability Impact Of Cultural District Designations, Prakash Mishra

Dartmouth Undergraduate Journal of Politics, Economics and World Affairs

The decision to declare a district for a specific cause is a critical policy decision; making an area an official office park or designated cultural site means it will attract specific types of residents and businesses and require specific amenities. This paper reviews the impact of designating a cultural district as a place-based policy, specifically by developing a measure of neighborhood stability and applying a stress test of neighborhood stability in cultural districts during the Great Recession. The model underpining the neighborhood stability measure is an optimal stopping time model which frames neighborhood rents as a Brownian motion with drift. …