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would make in it, and vice versa.

DiPasquale and Glaeser (1999) demonstrated that standard
economic incentives from the effects of homeownership and tenure does
influence investment in social capital. Areas with more homeowners have
lower government spending, but have a larger portion of government
budget on education and highways.

More recently, Chetty and Hendren (2015) illustrated that the effects
neighbourhoods have on intergenerational mobility varies substantially.
For each additional year a child spends growing up in an upwardly mobile
neighbourhood in the United States, adulthood household income
increases by 0.8% compared to the national average. In contrast, each year
spent in a bad neighbourhood decreases earnings by 0.7%.

The socioeconomic ramifications of the public housing policy are
dire and costly, the recommendation of OHKF to privatise future public
housing units should therefore be heeded. Yet, any proposal to reform Hong
Kong’s public sector housing policy and to create a market in public sector
housing units should consider whether justice is served by providing an
asset on subsidised terms to less well-off households. This consideration
will be discussed in the following chapter.

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