Homeownership, Community Interactions, and Segregation

35 Pages Posted: 20 Apr 2016

See all articles by Karla Hoff

Karla Hoff

World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Arijit Sen

Jawaharlal Nehru University

Date Written: May 20, 2004

Abstract

Hoff and Sen consider a multi-community city where community quality is linked to residents' civic efforts, such as being proactive in preventing crime and ensuring the quality of publicly provided goods. Homeownership increases incentives for such efforts, but credit market imperfections force the poor to rent. Within-community externalities can lead to segregated cities - with the rich living with the rich in healthy homeowner communities, and the poor living with the poor in dysfunctional renter communities. The pattern of tenure segregation across communities in the United States accords well with the study's prediction. The authors analyze alternative tax-subsidy policies to alleviate inefficiencies in the housing market and identify the winners and losers under such policies.

This paper - a product of Investment Climate, Development Research Group - is part of a larger effort in the group to understand how external agents can best complement the strategies of the poor to improve the responsiveness of local government and to strengthen community institutions.

Suggested Citation

Hoff, Karla and Sen, Arijit, Homeownership, Community Interactions, and Segregation (May 20, 2004). Available at SSRN: https://ssrn.com/abstract=610361

Karla Hoff (Contact Author)

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/khoff

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Arijit Sen

Jawaharlal Nehru University ( email )

Vasant Vihar
Jawaharlal Nehru University
New Delhi, DE Delhi
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
87
Abstract Views
1,017
rank
340,563
PlumX Metrics