Taiwanese President Tsai Ing-wen is expected to stop over in the U.S. on Friday on her way back from visiting diplomatic allies in the Caribbean, a move that's sure to make...China Politicsread more
Regional stability, oil prices and potential for war will all depend on what Iran does with its nuclear program in the event of the deal's termination.World Politicsread more
Libra and bitcoin are different in a lot of ways, from the technology behind them to the way they're used.Technologyread more
Stocks in major Asia Pacific markets made strong gains on Friday, as comments from a U.S. Federal Reserve official led to rising expectations the central bank could ease...Asia Marketsread more
Boeing will take a nearly $5 billion charge in the second quarter to compensate 737 Max customers as the planes remain grounded.Airlinesread more
Earlier, Williams delivered a speech at the annual meeting of the Central Bank Research Association in which he said, "It's better to take preventative measures than to wait...The Fedread more
The base version of the sports car will punch out 495 horsepower, 40 more than the seventh-generation car and enough to launch it from 0 to 60 in "less than three seconds"...Autosread more
Animation fans and Kyoto residents gathered at the site of Japan's worst mass killing in 18 years on Friday, offering flowers and prayers for the 33 people who died in an...Asia Newsread more
Trump said the USS Boxer destroyed Iran's drone in the Strait of Hormuz on Thursday in a "defensive action."Politicsread more
Microsoft beat on top and bottom lines, and guidance was just ahead of expectations, but the company's Azure growth is slowing down.Technologyread more
"We've seen Netflix stumble before, especially maybe after a price hike, but not quite like this," Jim Cramer says.Mad Money with Jim Cramerread more
Each new Starbucks boosts the value of housing prices in a neighborhood. And not by an insignificant amount.
This data point is revealed in a broader study on gentrification by the Harvard Business School that relied on information from Yelp, the online restaurant review platform, and the United States Census.
A new Starbucks introduced into a ZIP code is associated with a 0.5 percent increase in housing prices within a year, the paper found.
It's not clear whether housing prices are rising due to the Starbucks opening itself or simply because more affluent customers that would go to the coffee chain have moved into the area.
Harvard economics professor Edward Glaeser said Yelp data reveals it may be the latter. The study found that each 10-unit increase in the number of reviews is associated with a 1.4 percent increase in housing prices in the ZIP code.
"The most natural hypothesis to us is that restaurants respond to exogenous changes in neighborhood composition, not that restaurant availability is driving neighborhood change," the paper concludes.
This is the broader point of the paper, which surmises that gentrification is "strongly associated" with increases in the numbers of grocery stores, cafes, restaurants and bars.
A hot topic in policy debates worldwide, gentrification is defined as the process of rebuilding homes and businesses accompanied by an influx of middle-class or affluent people at the expense of earlier, often poorer residents. One big issue is the lack of consistent data to determine the effects of the trend — positive or negative.
The Harvard economists said their study, the first of its kind using Yelp data, shows there are new, more accurate ways to analyze the emotional issue.
"Government data from statistical agencies such as the Bureau of Labor Statistics and Census Bureau have long been used by economists for analyzing policy and the economy — these data sources are invaluable but come with important limitations," Michael Luca, an associate professor at HBS, told CNBC in an email.
The use of Yelp, Luca continued, compliments the existing data by providing real-time updates on local stores as well as an insight into how neighborhoods change during gentrification.
"Yelp data has the advantage of being more up to date than most official government statistics," the economist added. "It also contains metrics on things like cuisine, prices, and ratings that can be difficult to observe otherwise."
What remains uncertain, though, is any idea of causality, Glaeser wrote.
"Yet, it seems true that Yelp establishments from 2007-2011 predict changes in education levels over the next five years, but education from 2007 to 2011 does not predict increases in the number of Yelp establishments, once we control for the initial level of Yelp establishments."
So Starbucks may not be causing gentrification, but its arrival may confirm the gentrification trend.
"The presence of a Starbucks is far less important than whether the community has people who consume Starbucks," Glaeser writes in the paper. "Consequently, we think that this variable is likely to be a proxy for gentrification itself."