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Working Paper
Preferences over the Racial Composition of Neighborhoods: Estimates and Implications
We estimate the parameters of a dynamic, forward-looking neighborhood choice model in 197 metro areas where households have preferences over the racial composition of neighborhoods. Our inclusion of multiple metro areas in the estimation sample enables us to develop a new, shift-share IV strategy to estimate the impact of the racial composition of neighborhoods on location choice that relies only on across-metro comparisons of similarly situated neighborhoods. For the “shift,” we use national data to determine the probabilities different types of households live in different neighborhoods ...
Working Paper
Neighborhood Choices, Neighborhood Effects and Housing Vouchers
We study how households choose neighborhoods, how neighborhoods affect child ability, and how housing vouchers influence neighborhood choices and child outcomes. We use two new panel data sets with tract-level detail for Los Angeles county to estimate a dynamic model of optimal tract-level location choice for renting households and, separately, the impact of living in a given tract on child test scores (which we call ?child ability" throughout). We simulate optimal location choices and changes in child ability of the poorest households in our sample under various housing-voucher policies. We ...