Impacts of housing and mortgage market discrimination racial and ethnic disparities in homeownership

Abstract

There are persistent differences in homeownership rates across racial and ethnic groups. Homeownership rates for whites are over 20 percentage points higher than for blacks or Hispanics. This paper uses a model of the housing tenure decision to gain a better understanding of these racial and ethnic differentials in homeownership and employs a decomposition technique that has been applied to labor market discrimination to report the results of the empirical testing of two hypotheses: (1) race (ethnicity) influences the probability of ownership through differences in household endowments (income, education, age, gender, and family type) and market endowments (price and location); and (2) race (ethnicity) directly influences the probability of ownership through racial or ethnic discrimination and other factors that may be correlated with race or ethnicity.

We find endowment effects important in explaining the persistent racial and ethnic disparities in homeownership. In brief, logit analysis of 1989 American Housing Survey (AHS) national sample data reveals that 81 percent (78 percent) of the differences between the predicted probability of ownership between black and white households (Hispanic/non‐Hispanic) are due to differences in group endowments. Direct effects explain 19 percent of the black‐white differentials and 22 percent of the Hispanic/non‐Hispanic differentials. Because the direct effects are modeled as residual differences, it must be realized that the residual components could also be capturing the influence of important omitted or harder to measure variables internal to the market process and correlated with race or ethnicity. These include wealth, household location, employment history, credit history, and cultural predisposition toward homeownership.     

The reverse mortgage as an asset management tool

Abstract

Reverse mortgages are usually seen as a vehicle for increasing the income of poor, elderly households. This perspective, coupled with the relatively slow growth of reverse mortgage programs, has led some observers to question the growth potential of the reverse mortgage market. This article presents a more expansive view of reverse mortgages as a financial tool for tapping housing equity for various purposes and at various stages in the life cycle.

Three market segments for reverse mortgages are discussed: elderly persons living alone, other elderly households, and non‐elderly households. Potential uses include turning housing equity into personal human capital investment accounts, enabling children to provide care for their disabled parents, funding elderly households’ long‐term care insurance, and sustaining consumption. Recent progress in product development and availability and political pressures to find private financing for health and long‐term care suggest that the reverse mortgage market has considerable growth potential.     

New Urbanism and Selection Bias in the Formation of Social Capital

Over the past several decades, there has been a decline in social capital in American communities. New urbanism has been proposed as a tool to reverse some of this decline. This study seeks to understand the potential benefits of new urbanism in terms of social capital. Differences in social capital between a new urbanist subdivision (NUS) and a standard suburban subdivision (SSS) are compared. The findings of this study suggest that residents of NUSs have more social capital than residents of SSSs. However, many of the differences between the two communities disappeared when a social bias control was added to the model.     

A Critique of the Universalisability of Critical Human Rights Theory: The Displacement of Immanuel Kant

While the critically oriented writings of Immanuel Kant remain the key theoretical grounds from which universalists challenge reduction of international rights law and protection to the practical particularities of sovereign states, Kant’s theory can be read as also a crucial argument for a human rights regime ordered around sovereign states and citizens. Consequently, universalists may be tempted to push Kant’s thinking to greater critical examination of ‘the human’ and its properties. However, such a move to more theoretical rigour in critique only solidifies the subversive statism of Kant’s apparent universalism, as long as it remains embedded in his prior theory of critical philosophy that privileges a singular form of reason. Universalist theories of human rights can break with this contradiction only insofar as they also displace the right to philosophy from the subject and site of ‘civil’ man to a politics of theory where no such subject or site is guaranteed.     

Economic models as devices of policy change: Policy paradigms,paradigm shift,and performativity

Can the emergence of a new policy model be a catalyst for a paradigm shift in the overall interpretative framework of how economic policy is conducted within a society? This paper claims that models are understudied as devices used by actors to induce policy change. This paper explores the role of models in Danish economic policy, where, from the 1970s onwards, executive public servants in this area have exclusively been specialists in model design. To understand changes in economic policy, this paper starts with a discussion of whether the notion of paradigm shift is adequate. It then examines the extent to which the performativity approach can help identify macroscopic changes in policy from seemingly microscopic changes in policy models. The concept of performativity is explored as a means of thinking about the constitution of agency directed at policy change. The paper brings this concept into play by arguing that the “performative” embedding of models in institutions is an important aspect of how paradigm shifts unfold that the current literature has neglected.     

Le mythe de Cham dans quelques livrets scolaires du Congo belge

The author quotes and briefly analyses a few exerpts taken from textbooks written and printed by Christain missionaries for the Congo primary schools. The Bible story of Cham cursed by his father, told in those texts from which Congolese children learned to read in the first half of the 20th century, stressed the white man’s superiority as coming from God.     

Technology Trade

This study addresses the question of why some countries import more research and development-intensive goods than others. Using a panel data set of 80 countries for the period 1970–1995, results indicate that domestic investment, foreign direct investment and the quality of intellectual property rights systems positively affect technology imports. However, the higher the percentage of the workforce with primary studies, the lower technology imports are. Moreover, intellectual property rights tend to reinforce the positive role played by foreign direct investments in importing technology while the ability of imitation reduces the effect of intellectual property rights.     

Remittances,Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso

This paper applies Gini and concentration coefficient decomposition as well as the Foster-Greer-Thorbecke poverty index and the Stark-Yitzhaki welfare index to new data from four villages in Burkina Faso, to compare the marginal effects of remittances from intercontinental and intra-African migration on inequality, poverty and social welfare. Evidence is found that intra-African remittances reduce inequality while intercontinental remittances have the opposite effect. Also, it is found that although remittances from intercontinental migration are associated with much lower incidence, depth and severity of poverty, the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor.