A model analyzing the relationships among housing values, property taxation, local services, residential mobility, voting patterns, and local government policies leads to the conclusion that changes in intergovernmental grants, rather than tax limitations, may solve current problems in housing and services use. Availablility: Secretary, 1313 21st…

Briefly reviewed in this paper is the literature on racial transition. The review is built around three questions: (1) Where does racial transition take place? (2) How does racial transition proceed in a single neighborhood? and (3) How does racial transition in one neighborhood relate to racial transition in other neighborhoods? Models and…

This paper examines the economic incentives and institutions that support racial discrimination by real estate brokers. The economic incentives are derived from a search model of broker behavior in which a broker searches for buyers and listings (i.e., sellers who will sell through him) and then attempts to match buyers with his listings. This…

This paper reviews what is known about the effects of prejudice and discrimination on the urban housing market. Particular attention is given to distinguishing the effects of prejudice from the effects of discrimination. Theories about prejudice and discrimination in the urban housing market are reviewed and tested against available evidence.…

Economists have studied the effects of racial prejudice on urban residential structure using a set of models that focus on conditions at the border between the black and white areas. This paper reviews the theoretical literature on these border models and investigates their generality. Section 1 considers the border model developed by Bailey in…

The relationship between the level of income and the population of an urban area is a familiar concern in urban economics. Existing models of the relationship between income levels and urban population are considered to assume that there is a homogeneous labor force and, hence, a world in which there is no inequality in the size distribution of…

This paper focuses on designing policies to eliminate discrimination in the sale of single-family houses by analyzing the behavior of the agents who actually do most of the discriminating, namely real estate agents. Discriminatory practices are said to be supported by policies of house builders, lending institutions, and government, and by the…

One crucial step toward an understanding of discrimination against blacks in rental housing is a careful analysis of the landlord's economic incentives. Such analysis does not exist in the literature. This paper develops a model of landlord behavior under perfect competition when both black and white tenants have racial prejudice. This model…

Racial prejudice is said to influence strongly the locational decisions of households in urban areas. This paper introduces racial prejudice into a model of an urban area and derives several results about residential location. A previously developed long-run model of an urban area adds a locational dimension to a model of the housing market under…

The debate about the black-white price differential in housing is clarified in this paper. The theoretical literature on this differential is reviewed, and it is shown how the various theories can be tested in a regression of house values on housing characteristics. A properly specified house-value regression leads not only to tests of hypotheses…