IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/14470.html
   My bibliography  Save this paper

Are Mixed Neighborhoods Always Unstable? Two-Sided and One-Sided Tipping

Author

Listed:
  • David Card
  • Alexandre Mas
  • Jesse Rothstein

Abstract

A great deal of urban policy depends on the possibility of creating stable, economically and racially mixed neighborhoods. Many social interaction models - including the seminal Schelling (1971) model -- have the feature that the only stable equilibria are fully segregated. These models suggest that if home-buyers have preferences over their neighborhoods' racial composition, a neighborhood with mixed racial composition is inherently unstable, in the sense that a small change in the composition sets off a dynamic process that converges to either 0% or 100% minority share. Card, Mas, and Rothstein (2008) outline an alternative "one-sided" tipping model in which neighborhoods with a minority share below a critical threshold are potentially stable, but those that exceed the threshold rapidly shift to 100% minority composition. In this paper we examine the racial dynamics of Census tracts in major metropolitan areas over the period from 1970 to 2000, focusing on the question of whether tipping is "two-sided" or "one-sided". The evidence suggests that tipping behavior is one-sided, and that neighborhoods with minority shares below the tipping point attract both white and minority residents.

Suggested Citation

  • David Card & Alexandre Mas & Jesse Rothstein, 2008. "Are Mixed Neighborhoods Always Unstable? Two-Sided and One-Sided Tipping," NBER Working Papers 14470, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:14470
    Note: LS PE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w14470.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in Economics and Econometrics: Theory and Applications 3 Volume Hardback Set," ULB Institutional Repository 2013/175998, ULB -- Universite Libre de Bruxelles.
    2. Edward L. Glaeser & Jose Scheinkman, 2000. "Non-Market Interactions," NBER Working Papers 8053, National Bureau of Economic Research, Inc.
    3. David Card & Alexandre Mas & Jesse Rothstein, 2008. "Tipping and the Dynamics of Segregation," The Quarterly Journal of Economics, Oxford University Press, vol. 123(1), pages 177-218.
    4. Mathias Dewatripont & Lars Peter Hansen & Stephen Turnovsky, 2003. "Advances in Economics and Econometrics: Theory and Applications, Eighth World Congress," ULB Institutional Repository 2013/175999, ULB -- Universite Libre de Bruxelles.
    5. Mathias Dewatripont, 2003. "Advances in Economics and Econometrics: Theory and Applications 3 Volume Hardback Set Eighth World Congress," ULB Institutional Repository 2013/176000, ULB -- Universite Libre de Bruxelles.
    6. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 827-872.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Easterly William, 2009. "Empirics of Strategic Interdependence: The Case of the Racial Tipping Point," The B.E. Journal of Macroeconomics, De Gruyter, vol. 9(1), pages 1-35, June.
    2. Ioannides, Yannis M., 2015. "Neighborhoods to nations via social interactions," Economic Modelling, Elsevier, vol. 48(C), pages 5-15.
    3. Rosenthal, Stuart S. & Ross, Stephen L., 2015. "Change and Persistence in the Economic Status of Neighborhoods and Cities," Handbook of Regional and Urban Economics, Elsevier.
    4. Caetano, Gregorio & Maheshri, Vikram, 2017. "School segregation and the identification of tipping behavior," Journal of Public Economics, Elsevier, vol. 148(C), pages 115-135.
    5. Jordi Jofre-Monseny & Matz Dahlberg & Peter Fredriksson, 2012. "On the dynamics of segregation," ERSA conference papers ersa12p832, European Regional Science Association.
    6. repec:eee:juecon:v:99:y:2017:i:c:p:173-187 is not listed on IDEAS
    7. Bezin, Emeline & Moizeau, Fabien, 2017. "Cultural dynamics, social mobility and urban segregation," Journal of Urban Economics, Elsevier, vol. 99(C), pages 173-187.

    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:14470. 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: () or (Joanne Lustig). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.