HOUSE PRICE IMPACTS OF RACIAL, INCOME, EDUCATION, AND AGE NEIGHBORHOOD SEGREGATION

2014/11/13 by David M. Brasington, Diane Hite, Andres Jauregui · 1 citation
Economics, Econometrics and Finance · Social Sciences · #Housing Market and Economics #Urban, Neighborhood, and Segregation Studies #Spatial and Panel Data Analysis

paper · doi:10.1111/jors.12173

Abstract

ABSTRACT We study housing prices and neighborhood segregation. We advance the literature by (1) studying not just racial segregation like previous studies, but also segregation by age, income, and education level, (2) using a finer unit of geography to construct segregation measures, (3) incorporating spatial statistics, and (4) separating segregation effects from underlying population level effects. We find race segregation is positively related to house prices, with an elasticity of 0.19. In contrast, income and educational segregation reduce housing values, with elasticities of −0.23 and −0.21. By comparison, house age has an elasticity of −0.15. Age segregation is not generally capitalized.

Citations

• Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition
• A Pure Theory of Local Expenditures

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