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Working Paper
The Value of Piped Water and Sewers: Evidence from 19th Century Chicago
We estimate the impact of piped water and sewers on property values in late 19th century Chicago. The cost of sewer construction depends sensitively on imperceptible variation in elevation, and such variation delays water and sewer service to part of the city. This delay provides quasi-random variation for causal estimates. We extrapolate ate estimates from our natural experiment to the area treated with water and sewer service during 1874-1880 using a new estimator. Water and sewer access increases property values by a factor of about 2.8. This suggests that benefits are large relative to ...
Working Paper
The Price of Housing in the United States, 1890–2006
We construct the first consistent market rent and home sales price series for American cities across the 20th century using millions of newspaper real estate listings. Our findings revise several stylized facts about U.S. housing markets. Real market rents did not fall during the 20th century for most cities. Instead, real rental price levels increased by about 20 percent from 1890 to 2006. There was also greater growth in real housing sales prices from 1965 to 1995 than is commonly understood. Using these series, we document several new facts about housing markets. The return to ...
Working Paper
The Impact of Early Investments in Urban School Systems in the United States
Cities in the United States dramatically expanded spending on public education after World War I, with the average urban school district increasing per pupil expenditures by over 70 percent by 1924. We provide the first evaluation of these unprecedented investments in public education using a new dataset and plausibly exogenous growth in school spending generated by anti-German sentiment. We find that school resources significantly increased educational attainment and wages later in life, particularly for less advantaged children. Increases in expenditures can explain about 40 percent of the ...
Working Paper
Rental Prices and the Cost of Living in the United States, 1914–2006
The Rent of Primary Residence (RoPR) series constructed by the Bureau of Labor Statistics implies that nominal rental prices increased by just 2.6 percent per year from 1914 to 2006 while overall prices grew by 3.3 percent. We show that this “falling real rents” puzzle can be explained by the evolving treatment of shelter in the Consumer Price Index (CPI). In this paper, we construct a new, methodologically consistent shelter price series using the Historical Housing Prices (HHP) Project rental index. We also construct a revised set of shelter weights going back to 1914 and combine it ...