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

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  • Patrick Bajari
  • Matthew E. Kahn

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.

Suggested Citation

  • Patrick Bajari & Matthew E. Kahn, "undated". "Why Do Blacks Live in The Cities and Whites Live in the Suburbs?," Working Papers 00007, Stanford University, Department of Economics.
    • Handle: RePEc:wop:stanec:00007
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    File URL: http://www-econ.stanford.edu/faculty/workp/swp00007.pdf
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    Cited by:

    1. Bayer, Patrick & McMillan, Robert & Rueben, Kim S., 2004. "What drives racial segregation? New evidence using Census microdata," Journal of Urban Economics, Elsevier, vol. 56(3), pages 514-535, November.
    2. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    3. Bayer, Patrick & McMillan, Robert & Rueben, Kim, 2003. "An Equilibrium Model of Sorting in an Urban Housing Market: The Causes and Consequences of Residential Segregation," Center Discussion Papers 28503, Yale University, Economic Growth Center.
    4. 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.
    5. Patrick Bayer & Christopher Timmins, 2007. "Estimating Equilibrium Models Of Sorting Across Locations," Economic Journal, Royal Economic Society, vol. 117(518), pages 353-374, March.
    6. Bayer, Patrick & McMillan, Robert & Rueben, Kim, 2004. "Residential Segregation in General Equilibrium," Center Discussion Papers 28517, Yale University, Economic Growth Center.
    7. Patrick Bayer & Robert McMillan, 2005. "Racial Sorting and Neighborhood Quality," NBER Working Papers 11813, National Bureau of Economic Research, Inc.
    8. 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.
    9. Mario du Preez & Michael C. Sale, 2012. "Determining the impact of low-cost housing development on nearby property prices using discrete choice analysis," Working Papers 265, Economic Research Southern Africa.
    10. 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.
    11. 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.
    12. 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.
    13. Bayer, Patrick & Timmins, Christopher, 2003. "Estimating Equilibrium Models of Sorting Across Locations," Center Discussion Papers 28448, Yale University, Economic Growth Center.
    14. Fortenberry Jr., John L. & McGoldrick, Peter J., 2011. "Receptiveness of Black Americans to outdoor advertising," Journal of Business Research, Elsevier, vol. 64(6), pages 586-593, June.

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