Distinguishing Racial Preferences in the Housing Market: Theory and Evidence

  • Patrick Bayer
  • Robert McMillan

Given the extent of residential segregation on the basis of race and ethnicity in U.S. cities, it is unsurprising that a long line of research in social science has attempted to better-understand the causes and consequences of segregation. One prominent branch of that literature has used housing market data on the observed patterns of residential sorting and corresponding housing prices to make inferences about (i) the nature of household preferences for the racial composition of their neighborhoods and (ii) the extent to which segregation is driven by centralized discriminatory forces versus the decentralized location decisions of households, given their preferences (Zabel, this Volume, and Hite, this Volume).1


Housing Price Equilibrium Price Racial Composition Hedonic Price School Quality 
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Copyright information

© Springer Science + Business Media, LLC 2008

Authors and Affiliations

  • Patrick Bayer
    • 1
  • Robert McMillan
    • 2
  1. 1.Duke UniversityDurhamUS
  2. 2.University of TorontoTorontoCanada

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