Discrimination and sorting in the real estate market: Evidence from terrorist attacks and mosques

Louis-Pierre Lepage

European Economic Review, 2023, vol. 153, issue C

Abstract: I evaluate the impact of Islamist terrorist attacks, taken as exogenous shocks which may change individual perceptions towards Middle Easterners and Muslims, on the real-estate market. Using detailed property-level transactions data, I find that US property prices immediately near mosques fell by 5% in the two years following 9/11. I find little evidence of changes in the number of transactions, but an increase of up to 30% in the fraction of Middle Eastern and North African households locating near mosques, indicating increased ethnic and religious sorting from 9/11. Additional evidence suggests that price decreases across areas are in line with increased prejudice.

Keywords: Housing market; Terrorism; Household sorting; Discrimination (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:153:y:2023:i:c:s0014292123000156

DOI: 10.1016/j.euroecorev.2023.104386

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