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Why Do Blacks Live in The Cities and Whites Live in the Suburbs?

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Author Info
Patrick Bajari
Matthew E. Kahn

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Abstract

Revised March 2001

This paper estimates a discrete choice model of housing product demand to study the causes of black urbanization. Our estimation strategy incorporates that there are unobserved product attributes which are correlated with observed product attributes. We bound racial differences in household willingness to pay for product attributes without implementing an instrumental variables strategy. Thus, we relax a number of assumptions implicit in “hedonic two step” housing research. Our primary explanation for excess black urbanization focuses on the disutility from commuting and the bundling of housing and labor markets.

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Paper provided by Stanford University, Department of Economics in its series Working Papers with number 00007.

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Handle: RePEc:wop:stanec:00007

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  1. Patrick Bayer & Christopher Timmins, 2003. "Estimating Equilibrium Models of Sorting across Locations," Working Papers 862, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  2. Patrick Bayer & Robert McMillan, 2005. "Racial Sorting and Neighborhood Quality," NBER Working Papers 11813, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Patrick Bayer & Robert McMillan & Kim Rueben, 2003. "An Equilibrium Model of Sorting in an Urban Housing Market: A Study of the Causes and Consequences of Residential Segregation," Working Papers 03-01, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  4. Patrick Bayer & Robert McMillan & Kim Rueben, 2003. "An Equilibrium Model of Sorting in an Urban Housing Market: The Causes and Consequences of Residential Segregation," Working Papers 860, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  5. Douglas Coate & Richard Schwester, 2008. "Black-White Appreciation of Owner Occupied Homes in Upper Income Suburban Integrated Communities: The Cases of Maplewood and Montclair, New Jersey," Working Papers Rutgers University, Newark 2008-001, Department of Economics, Rutgers University, Newark. [Downloadable!]
  6. Patrick Bayer & Robert McMillan & Kim Rueben, 2003. "What Drives Racial Segregation? New Evidence Using Census Microdata," Working Papers 859, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  7. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "An Equilibrium Model of Sorting in an Urban Housing Market," NBER Working Papers 10865, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2003. "A Unified Framework for Estimating Preferences for Schools and Neighborhoods," Working Papers 872, Economic Growth Center, Yale University. [Downloadable!]
  9. Patrick Bayer & Robert McMillan & Kim Rueben, 2004. "Residential Segregation in General Equilibrium," Working Papers 885, Economic Growth Center, Yale University. [Downloadable!]
    Other versions:
  10. Bulent Uyar & Kenneth H. Brown, 2005. "Impact of Local Public Services and Taxes on Dwelling Choice within a Single Taxing Jurisdiction: A Discrete Choice Model," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 427-444. [Downloadable!]
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