TY  - JOUR
AU  - Bajari,Patrick
AU  - Kahn,Matthew E.
TI  - Estimating Housing Demand with an Application to Explaining Racial Segregation in Cities
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9891
PY  - 2003
Y2  - August 2003
UR  - http://www.nber.org/papers/w9891
L1  - http://www.nber.org/papers/w9891.pdf
N1  - Author contact info:
Patrick Bajari
University of Washington
331 Savery Hall
UW Economics Box 353330
Seattle, Washington 98195-3330
E-Mail: Bajari@uw.edu

Matthew E. Kahn
UCLA Institute of the Environment
Department of Economics
Department of Public Policy
Anderson School of Management
UCLA Law School, Box 951496
Los Angeles, CA 90095-1496
Tel: 310/794-4904
Fax: 310/825-9663
E-Mail: mkahn@ioe.ucla.edu
AB  - 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.
ER  -