Credit Standards and Segregation

• 成果类型: Article
• 署名作者: Ouazad, Amine; Ranciere, Romain
• 署名单位: Institut Polytechnique de Paris; Ecole Polytechnique; University of Southern California
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00596
• 发表日期: 2016-12
• 页码: 880-896
• 关键词: racial segregation; mortgage; securitization; dimensions; models

摘要

This paper explores the effects of changes in lending standards on racial segregation within metropolitan areas. Such changes affect neighborhood choices as well as aggregate prices and quantities in the housing market. Using the credit boom of 2000 to 2006 as a large-scale experiment, we put forward an IV strategy that predicts the relaxation of credit standards as the result of a credit supply shock predominantly affecting liquidity-constrained banks. The relaxed lending standards led to significant outflows of whites from black and racially mixed neighborhoods. Without such a credit supply shock, black households would have had between 2.3 and 5.1 percentage points more white neighbors in 2010.