Externality

(redirected from Neighborhood Effect)
Also found in: Dictionary, Thesaurus.

Externality

The cost or benefits of a transaction to parties who do not directly participate in it. Externality can be either positive or negative. For example, a merger can lead to higher share prices and bonuses for employees, benefiting shareholders and employees at the two companies merging, This can create wealth and positively impact a community. On the other hand, the merger can drive a competitor out of business, which results in layoffs and reduced wealth, which can hurt a community. Externality is also called spillover or the neighborhood effect. See also: External benefit, External cost.
References in periodicals archive ?
Second, local-average-treatment-effect estimates appear to reconcile the evidence from MTO with prevailing theories of neighborhood effects.
Although it is very simple, it produces a very powerful attitude (Wolfram, 1986) The important thing is to achieve a balance between the effects of neighborhood as a consequence of direct interactions between users and adjacent land and the neighborhood effects driven from spatial autocorrelation in the driving forces.
i,t] will likely enhance the unemployment neighborhood effect as well as the spillover effects as we discussed above and hence may positively contribute to the regional unemployment rates.
TABLE 4 Neighborhood Data By Zip Code for New York City Variable Description Source %5YRS-ND (a) Neighborhood effect Section 3 %2YRS-ND (a) Neighborhood effect Section 3 %MASTERS-ND (a) Neighborhood effect Section 3 ELEM SCHOOLS # of elementary schools NYC DOE Report Card Data VCRIMES Violent crimes per 10,000 NY Ofc.
Neighborhood effects are the self-reinforcing effects of institutional relationships that link a family's well-being to that of its neighborhood, and the neighborhood's status, in turn, to that of the resident neighbor families.
I modeled the probability the individual was attributed in the current year, based on current age, gender, plan enrollment, and neighborhood effects, and based on the prior year's health status to avoid having current health status confound current patterns of care-seeking.
1) Ideally, it would be more appropriate to investigate the asymmetry of neighborhood effect using panel data at the household level.
Since homeowners and renters may live in very different kinds of neighborhoods, and children's outcomes may be affected by these different neighborhoods, the failure to control for them could produce estimates that mistakenly attribute neighborhood effects to homeownership.
There is a considerable amount of variation in these neighborhood effects across observations, as shown in Table 1.
One of the first examples was the Gautreaux program in Chicago, which found evidence of neighborhood effects on educational and employment outcomes.
Regarding our main hypothesis on neighborhood effects, we find that financial literacy is strongly positively associated with the zip code's education level.
Regional science could help sharpen the estimates of life satisfaction by controlling for neighborhood effects, thereby shedding light on whether some of the more obvious regional or national groupings (e.

Full browser ?