Estimating Housing Demand with an Application to Explaining Racial Segregation in Cities

Patrick Bajari and Matthew Kahn

No 9891, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We present a three-stage estimation procedure to recover willingness to pay for housing attributes. In the first stage, we estimate a non-parametric hedonic home price function. Second, we recover each consumer's taste parameters for product characteristics using first order conditions for utility maximization. Finally, we estimate the distribution of household tastes as a function of household demographics. As an application of our methods, we compare alternative explanations for why blacks choose to live in center cities while whites suburbanize.

JEL-codes: C5 R0 (search for similar items in EconPapers)
Date: 2003-08
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (7)

Published as Bajari, Patrick and Matthew E. Kahn. "Estimating Housing Demand With An Application To Explaining Racial Segregation In Cities," Journal of Business and Economic Statistics, 2005, v23(1,Jan), 20-33.

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Journal Article: Estimating Housing Demand With an Application to Explaining Racial Segregation in Cities (2005)
Working Paper: Estimating Housing Demand with an Application to Explaining Racial Segregation in Cities (2002)
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