Lending patterns in poor neighborhoods
Concentrated poverty has been said to impose a double burden on those that confront it. In addition to an individual's own financial constraints, institutions and social networks of poor neighborhoods can further limit access to quality services and resources for those that live there. This study contributes to the characterization of the relationship between subprime lending and poor neighborhoods by including a spatial dimension to the analysis, in an attempt to capture social effect differences in poor and less poor neighborhoods. The analysis is applied to 2004-2006 census tract level data in Cuyahoga County, home to Cleveland, Ohio, a region that features urban neighborhoods highly segregated by income and race. The patterns found in poor neighborhoods suggest stronger social interaction effects inducing subprime lending in comparison to less poor neighborhoods.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: 1455 East 6th St., Cleveland OH 44114|
Web page: http://www.clevelandfed.org/
More information through EDIRC
|Order Information:|| Email: |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Atif Mian & Amir Sufi, 2009. "The Consequences of Mortgage Credit Expansion: Evidence from the U.S. Mortgage Default Crisis," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1449-1496.
- DeanS. Karlan, 2007.
"Social connections and group banking,"
Royal Economic Society, vol. 117(517), pages F52-F84, 02.
- Blume, Lawrence E. & Brock, William A. & Durlauf, Steven N. & Ioannides, Yannis M., 2010.
"Identification of Social Interactions,"
260, Institute for Advanced Studies.
- Lawrence E. Blume & William A. Brock & Steven N. Durlauf & Yannis M. Ioannides, 2010. "Identification of Social Interactions," Discussion Papers Series, Department of Economics, Tufts University 0754, Department of Economics, Tufts University.
- J. Paul Elhorst & Sandy Fréret, 2009. "Evidence Of Political Yardstick Competition In France Using A Two-Regime Spatial Durbin Model With Fixed Effects," Journal of Regional Science, Wiley Blackwell, vol. 49(5), pages 931-951.
- Jason P. Brown & Raymond J.G.M. Florax & Kevin T. McNamara, 2009.
"Determinants Of Investme??T Flows In U.S. Manufacturing,"
09-10, Purdue University, College of Agriculture, Department of Agricultural Economics.
- Brown, Jason P. & Florax, Raymond J. G. M. & McNamara, Kevin T., 2009. "Determinants of Investment Flows in U.S. Manufacturing?," The Review of Regional Studies, Southern Regional Science Association, vol. 39(3), pages 269-86.
- Rajiv Sethi & Rohini Somanathan, 2001. "Racial Income Disparities and the Measurement of Segregation," Urban/Regional 0107001, EconWPA.
- Topa, Giorgio, 1997.
"Social Interactions, Local Spillovers and Unemployment,"
97-17, C.V. Starr Center for Applied Economics, New York University.
- Giorgio Topa, 2001. "Social Interactions, Local Spillovers and Unemployment," Review of Economic Studies, Oxford University Press, vol. 68(2), pages 261-295.
- Charles F. Manski, 2000.
"Economic Analysis of Social Interactions,"
NBER Working Papers
7580, National Bureau of Economic Research, Inc.
- Patricia A. McCoy, 2007. "The Home Mortgage Disclosure Act: A Synopsis and Recent Legislative History," Journal of Real Estate Research, American Real Estate Society, vol. 29(4), pages 391-398.
- Jane Cooley Fruehwirth, 2014. "Can Achievement Peer Effect Estimates Inform Policy? A View from Inside the Black Box," The Review of Economics and Statistics, MIT Press, vol. 96(3), pages 514-523, July.
When requesting a correction, please mention this item's handle: RePEc:fip:fedcwp:1006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (4D Library)
If references are entirely missing, you can add them using this form.