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Hedonic Estimates of Neighborhood Ethnic Preferences

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  • John Yinger

Abstract

This article uses a new hedonic technique to examine households’ ethnic preferences and help assessors estimate the impact of neighborhood ethnicity on housing prices. A hedonic function, which relates housing and neighborhood characteristics to house values, is the envelope of households’ bids for these characteristics. This article derives this envelope by combining theories about household sorting across neighborhoods with constant-elasticity demand functions for neighborhood characteristics and housing. Estimates for the Cleveland area in 2000 find that some households prefer neighborhoods without black or Hispanic residents, whereas others prefer largely black or Hispanic neighborhoods, and that house values reflect ethnic preferences.

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  • John Yinger, 2016. "Hedonic Estimates of Neighborhood Ethnic Preferences," Public Finance Review, , vol. 44(1), pages 22-51, January.
    • Handle: RePEc:sae:pubfin:v:44:y:2016:i:1:p:22-51
    DOI: 10.1177/1091142113520562
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    References listed on IDEAS

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    1. Hanson, Andrew & Hawley, Zackary, 2011. "Do landlords discriminate in the rental housing market? Evidence from an internet field experiment in US cities," Journal of Urban Economics, Elsevier, vol. 70(2-3), pages 99-114, September.
    2. Duncombe, William & Yinger, John, 2005. "How much more does a disadvantaged student cost?," Economics of Education Review, Elsevier, vol. 24(5), pages 513-532, October.
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    7. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
    8. Stephen L. Ross & John Yinger, 2002. "The Color of Credit: Mortgage Discrimination, Research Methodology, and Fair-Lending Enforcement," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182289, December.
    9. Choi, Seok Joon & Ondrich, Jan & Yinger, John, 2005. "Do rental agents discriminate against minority customers? Evidence from the 2000 Housing Discrimination Study," Journal of Housing Economics, Elsevier, vol. 14(1), pages 1-26, March.
    10. John Yinger, 1978. "The Black-White Price Differential in Housing: Some Further Evidence," Land Economics, University of Wisconsin Press, vol. 54(2), pages 187-206.
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    Cited by:

    1. Jeremy Pais, 2017. "Intergenerational Neighborhood Attainment and the Legacy of Racial Residential Segregation: A Causal Mediation Analysis," Demography, Springer;Population Association of America (PAA), vol. 54(4), pages 1221-1250, August.
    2. Hawley, Zackary & Miranda, Juan José & Sawyer, W. Charles, 2018. "Land values, property rights, and home ownership: Implications for property taxation in Peru," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 38-47.
    3. Viggo Nordvik & Liv Osland & Inge Thorsen & Ingrid Sandvig Thorsen, 2019. "Capitalization of neighbourhood diversity and segregation," Environment and Planning A, , vol. 51(8), pages 1775-1799, November.

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    Keywords

    hedonics; ethnicity; prejudice;
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