Description: Homeownership, Community Interactions, and Segregation

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Homeownership, Community Interactions, and Segregation

The authors 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...

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Bibliographic Details
Main Authors:	Hoff, Karla, Sen, Arijit
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	AGGREGATE DEMAND AIR POLLUTION APARTMENTS BENCHMARK CAPITAL GAINS CITIES CITIZENS COMMUNITIES CONFLICT CRIME DEBT DIMINISHING RETURNS ECONOMIC PERFORMANCE EMPIRICAL EVIDENCE EMPIRICAL STUDIES EQUILIBRIUM EXTERNALITIES EXTERNALITY FAMILIES HOMEOWNERS HOMES HOUSEHOLDS HOUSES HOUSING HOUSING CONTRACTS HOUSING MARKET HOUSING PROJECTS HOUSING UNITS INCOME INCOME DISTRIBUTION INDIFFERENCE CURVES INEFFICIENCY INEQUALITY INTEREST RATES LOCAL INSTITUTIONS MARGINAL COST MOBILITY MORAL HAZARD MULTIPLIER EFFECT NEIGHBORHOODS PEER GROUPS POLITICAL PARTICIPATION POLLUTION POOR HOUSING PRESENT VALUE PROPERTY VALUES PUBLIC GOOD RENTING RENTS SAFETY SAVINGS SOCIAL INTERACTIONS SOCIAL PROBLEMS SOCIETY SUPPLY CURVES URBAN DEVELOPMENT URBAN REDEVELOPMENT WEALTH APARTMENTS COMMUNITY ORGANIZATIONS COMMUNITY SAFETY HOUSING SUBSIDIES LOCAL GOVERNMENTS
Online Access:	http://documents.worldbank.org/curated/en/2004/05/4973500/homeownership-community-interactions-segregation http://hdl.handle.net/10986/14019

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Summary:	The authors 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.