A Model of Residential Change and Neighborhood Tipping
AbstractThis 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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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 305.
Date of creation: 1978
Date of revision:
Other versions of this item:
- Anas, Alex, 1980. "A model of residential change and neighborhood tipping," Journal of Urban Economics, Elsevier, vol. 7(3), pages 358-370, May.
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- Yannis Ioannides, 2001.
"Interactive Property Valuations,"
Discussion Papers Series, Department of Economics, Tufts University
0102, Department of Economics, Tufts University.
- Ioannides, Yannis M., 2002.
"Residential neighborhood effects,"
Regional Science and Urban Economics,
Elsevier, vol. 32(2), pages 145-165, March.
- Yannis M. Ioannides, 1999. "Residential Neighborhood Effects," Discussion Papers Series, Department of Economics, Tufts University 9912, Department of Economics, Tufts University.
- 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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