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

45 Pages Posted: 13 Mar 2001

See all articles by Matthew E. Kahn

Matthew E. Kahn

University of Southern California; National Bureau of Economic Research (NBER)

Patrick Bajari

University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 2001

Abstract

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 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.

Keywords: Housing demand, commuting, sprawl, race

Suggested Citation

Kahn, Matthew E. and Bajari, Patrick, Why Do Blacks Live in the Cities and Whites Live in the Suburbs? (March 2001). Available at SSRN: https://ssrn.com/abstract=263049 or http://dx.doi.org/10.2139/ssrn.263049

Matthew E. Kahn (Contact Author)

University of Southern California ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Patrick Bajari

University of Michigan at Ann Arbor - Department of Economics ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States
734-763-5319 (Phone)

HOME PAGE: http://www-personal.umich.edu/~bajari/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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