Mortgage Lending in Boston: A Reconsideration of the Evidence

Glenn Harrison

Economic Inquiry, 1998, vol. 36, issue 1, 29-38

Abstract: Is there statistical evidence of racial discrimination in home mortgage markets? The Boston Fed recently addressed this concern head-on by collecting all available data from loan applications in Boston. They find that the extent of discrimination is reduced after one accounts for all of the confounding variables measured in these applications but that it remains statistically significant. However, their strong conclusions are unwarranted due to the use of invalid statistical methods. Correctly evaluated, their data provide no significant evidence of racial discrimination in mortgage markets. Copyright 1998 by Oxford University Press.

Date: 1998
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