{"id":56343,"date":"2021-09-21T15:45:48","date_gmt":"2021-09-21T14:45:48","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=event&#038;p=56343"},"modified":"2022-02-09T11:19:03","modified_gmt":"2022-02-09T11:19:03","slug":"does-racial-bias-distort-neighborhood-choice-the-impacts-of-discrimination-on-welfare-and-revealed-preference-in-the-rental-housing-market-christopher-timmins","status":"publish","type":"event","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/events\/does-racial-bias-distort-neighborhood-choice-the-impacts-of-discrimination-on-welfare-and-revealed-preference-in-the-rental-housing-market-christopher-timmins\/","title":{"rendered":"Does Racial Bias Distort Neighborhood Choice? The Impacts of Discrimination on Welfare and Revealed Preference in the Rental Housing Market | Christopher Timmins"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>Christopher Timmins is a Professor in the Department of Economics at Duke University, with a secondary appointment in Duke&rsquo;s Nicholas School of the Environment.&nbsp;<\/p>\n\n\n\n<p>He will be presenting his paper &lsquo;Does Racial Bias Distort Neighborhood Choice? The Impacts of Discrimination on Welfare and Revealed Preference in the Rental Housing Market&rsquo;<\/p>\n\n\n\n<p><strong>Abstract:&nbsp;<\/strong>By constraining an individual&rsquo;s choice during a search, housing discrimination distorts sorting decisions away from true preferences and results in a ceteris paribus reduction in buyer welfare.&nbsp;&nbsp;This study combines a large-scale field experiment with a residential sorting model to derive utility-theoretic measures of renter welfare loss associated with the constraints imposed by discrimination in the rental housing market.&nbsp;&nbsp;In the five major metropolitan markets we study, we find that key amenities such as lower air toxicity and better schools are associated with higher levels of discrimination.&nbsp;&nbsp;We estimate welfare costs to renters from discriminatory constraints during the first phase of a search in these cities to be equivalent to 4.6% and 4.7% of the annual incomes for the average African American and Hispanic\/LatinX households, respectively.&nbsp;&nbsp;For African American renters, these costs increase substantially at higher levels of income due to systematic exclusion from high amenity neighborhoods.&nbsp;&nbsp;African American renters face damages greater than 7% of income at income levels above $100,000 per year.&nbsp;&nbsp;We then study the effects of discrimination on revealed preferences for urban amenities.&nbsp;&nbsp;We find that discrimination drives a wedge between true preferences for key neighborhood amenities and those estimated without accounting for discriminatory constraints.&nbsp;&nbsp;A naive model that ignores those constraints understates the marginal willingness to pay of renters of color for a variety of neighborhood amenities by 2.2% to 5.2% relative to White renters.<\/p>\n\n\n\n<p>Please email&nbsp;<a href=\"mailto:gri.events@lse.ac.uk\"><strong>gri.events@lse.ac.uk<\/strong><\/a>&nbsp; to request the Zoom joining details for this workshop by by 5pm on Tuesday, 1st&nbsp;March 2022.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>Christopher Timmins is a Professor in the Department of Economics at Duke University, with a secondary appointment in Duke&rsquo;s Nicholas School of the Environment. He will be presenting his paper &lsquo;Does Racial Bias Distort Neighborhood Choice? The Impacts of Discrimination on Welfare and Revealed Preference in the Rental Housing Market&rsquo;.<\/p>\n\n","protected":false},"author":12,"featured_media":0,"template":"","tags":[],"event-type":[35],"topic_area":[],"class_list":["post-56343","event","type-event","status-publish","hentry","event-type-research-seminar-series"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"start_date":{"ref_value":"field_52f56b18a98ba","value":"20220302","type":false,"post_type":""},"start_time":{"ref_value":"field_52f56b33a98bb","value":"12:30:00","type":false,"post_type":""},"end_date":{"ref_value":"field_52f56bb58f239","value":"20220302","type":false,"post_type":""},"end_time":{"ref_value":"field_52f56bd38f23a","value":"14:00:00","type":false,"post_type":""},"event_venue":{"ref_value":"field_531c65c575d35","value":"Online (via Zoom)","type":false,"post_type":""},"location":{"ref_value":"field_559cf9dc612b6","value":"","type":false,"post_type":""},"external_speaker":{"ref_value":"field_5374dcb208782","value":"","type":false,"post_type":""},"eventbrite_link":{"ref_value":"field_52f59e0b20728","value":"","type":false,"post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["does-racial-bias-distort-neighborhood-choice-the-impacts-of-discrimination-on-welfare-and-revealed-preference-in-the-rental-housing-market-christopher-timmins"],"type":"relationship","post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Does Racial Bias Distort Neighborhood Choice? 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