Racism is alive and well

…and it manifests in housing markets:

The findings from this exercise indicate that the preference estimates derived from our dynamic approach differ substantially from estimates derived from a comparable static demand model. For example, the per-year willingness to pay to avoid a 10-percent increase in the number violent crimes per 100,000 population is $586 (in 2000 dollars), which is about seventy percent higher than the $344 recovered from a comparable static estimation procedure. In the case of air pollution, the corresponding differences are even larger ($296 from the dynamic model versus $73 from the static) though still in the same direction. In contrast, the per-year marginal willingness to pay for race (in particular, the preferences of whites for living in proximity to other whites) is $1,558 whereas the estimate from a naive static model is substantially higher at $1,973.

Amazing that the emphasis in the article is on how $1,558 is such a low number.

Among (lots of) other things, this indicates to me that hedonic research studies looking at the impact of arts development on real estate prices will need to control for race.

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3 Comments

  1. Posted August 16th, 2011 at 10:36 am | Permalink

    Ian,

    Very interesting, thank you for sharing. How depressing that the report says they “only use white households when estimating the model,” and presents no data about $ or % value placed on race by people of color. The study also says San Francisco was an “outlier” in their data analysis, but SF is one of the most interesting places to examine arts and cultural development over the past 30 years in relation changing demographics and economic development.

    I look forward to seeing what other dialogue comes out of this. One of the things I love about createquity is how you connect data from other sources to arts possibilities.

    -Lex

  2. Kim Cook
    Posted August 16th, 2011 at 2:57 pm | Permalink

    I would add these two pieces from recent NYT reports as additional evidence of racism, and issues of social, economic equity that perpetuate:
    The first speaks to the Pew research on loss of household “wealth” or net worth from the recession – while the headline talks about Hispanic household losses being greatest, later in the story you get to what I think is real news_that median household income for Caucasian/White is 20 times that for African-American households and 18 times that for Hispanics. While if you looked at mean instead of median you might not get as dramatic a number, it still is telling. (and profound)
    http://www.nytimes.com/2011/07/26/us/26hispanics.html?_r=2&nl=todaysheadlines&emc=tha2
    The second an op-ed that speaks to the atrocious comments by Michelle Bachmann and her ilk that black families were more likely to stay together during slavery than today. A comment so abhorrent it’s frightening: http://www.nytimes.com/2011/08/02/opinion/putting-an-antebellum-myth-about-slave-families-to-rest.html?_r=1&nl=todaysheadlines&emc=thab1

  3. Posted September 17th, 2011 at 11:56 pm | Permalink

    And now it turns out that white people are more likely to get college scholarships too.

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