Empirics of Strategic Interdependence: The Case of the Racial Tipping Point
AbstractThe Schelling model of a tipping point" in racial segregation, in which whites flee a neighborhood once a threshold of nonwhites is reached, is a canonical model of strategic interdependence. The idea of tipping" explaining segregation is widely accepted in the academic literature and popular media. I use census tract data for metropolitan areas of the U.S. from 1970 to 2000 to test the predictions of the Schelling model and find that this particular model of strategic interaction largely fails the tests. There is more white flight" out of neighborhoods with a high initial share of whites than out of more racially mixed neighborhoods.
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Bibliographic InfoArticle provided by De Gruyter in its journal The B.E. Journal of Macroeconomics.
Volume (Year): 9 (2009)
Issue (Month): 1 (June)
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Other versions of this item:
- William Easterly, 2009. "Empirics of Strategic Interdependence: The Case of the Racial Tipping Point," NBER Working Papers 15069, National Bureau of Economic Research, Inc.
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
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