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Economic Effects of Racial Integration: An Analysis of Hedonic Housing Prices and the Willingness to Pay
Author(s) -
Gabriel Stuart A.
Publication year - 1987
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00432
Subject(s) - economics , willingness to pay , economic analysis , willingness to accept , market integration , microeconomics , public economics , classical economics
This study evaluates household economic effects stemming from neighborhood racial integration in Oakland, California. To that end, housing market data are applied to estimate hedonic price and willingness‐to‐pay functions for neighborhood racial composition. Results of the analysis indicate the problematic nature of the constant willingness‐to‐pay assumption and suggest this standard method may underestimate the household economic effects of racial integration. The paper concludes with implications for neighborhood integration policy.