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A model of residential change and neighborhood tipping

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  • Anas, Alex

Abstract

This paper applies the theory of probabilistic consumer demand to an analysis of residential change at the urban neighborhood scale. By developing the profit maximizing pricing behaviour of housing suppliers, it is shown that neighborhood transitions from high income to low income and from white to black can be explained on purely economic grounds without involving prejudicial preferences. The analytical model explains two types of transition. In the first, a neighborhood's social mix changes gradually in response to gradual exogenous changes. In the second, a neighborhood "tips" suddenly in response to similar exogenous changes. The two transitions can occur depending on the characteristics of the demand functions for the two competing groups.

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File URL: http://www.sciencedirect.com/science/article/B6WMG-4DBJ8V1-18/2/ba9cfc6d241bbee09f0451ebca9a2313
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 7 (1980)
Issue (Month): 3 (May)
Pages: 358-370

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Handle: RePEc:eee:juecon:v:7:y:1980:i:3:p:358-370

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Web page: http://www.elsevier.com/locate/inca/622905

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Cited by:
  1. Ioannides, Yannis M., 2003. "Interactive property valuations," Journal of Urban Economics, Elsevier, vol. 53(1), pages 145-170, January.
  2. Yannis M. Ioannides, 1999. "Residential Neighborhood Effects," Discussion Papers Series, Department of Economics, Tufts University 9912, Department of Economics, Tufts University.
  3. Clark, William A.V., 1988. "Ethnic Preferences and Neighborhood Transitions," Institute for Social Science Research, Working Paper Series qt9j54d99v, Institute for Social Science Research, UCLA.

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