In this article, the authors explore residential mortgage foreclosure as a mechanism that links economic shocks and the process of racial transition (Lauria 1998). Their analysis indicates that housing foreclosures added momentum to an ongoing process of racial transition, net of the effects of exogenous economic shocks and such other variables as median income of residents, change in the value of owner-occupied housing, and the existing racial distribution of population. Foreclosure appears to have the strongest effect on racial transition in block groups where resident incomes are above the lowest levels and there is a preexisting and increasing black population.
Get full access to this article
View all access options for this article.
References
1.
Allison, P.1990. Change scores as dependent variables in regression analysis. Sociological Methodology20: 93-114.
2.
Baxter, V.1997. The effects of industry governance on offshore oil development in the Gulf of Mexico. International Journal of Urban and Regional Research21 (2): 238-258.
3.
Beck, N. , and J. N. Katz. 1996. Nuisance vs. substance: Specifying and estimating time-series- cross-section models. Political Analysis6: 1-37.
4.
Bollen, K. A.1989. Structural equations with latent variables. New York: John Wiley.
5.
Bradbury, K. , A. Downs, and K. Small. 1982. Urban decline and the future of American cities. Washington, DC: Brookings Institution.
6.
Bradford, C. P. , and L. S. Rubinowitz. 1975. The urban-suburban investment disinvestment process: Consequences for older neighborhoods. Annals of the American Association of Political and Social Sciences422: 77-86.
7.
Case, K. E. , and R. J. Shiller. 1996. Mortgage default risk and real estate prices: The uses of index-based futures and options in real estate. Journal of Housing Research7 (2): 243-258.
8.
Clark, W.A.V.1991. Residential preferences and neighborhood racial segregation: A test of the Schelling segregation model. Demography28 (1): 1-19.
9.
Cook, C. C.1988. Components of neighborhood satisfaction: Responses from urban and suburban low-income, single-parent women. Environment and Behavior20 (2): 115-149.
10.
Cunningham, D. F. , and C. A. Capone. 1990. The relative termination experiences of adjustable to fixed-rate mortgages. Journal of Finance55 (5): 1687-1705.
11.
Denton, N. A. , and D. S. Massey. 1991. Patterns of neighborhood transition in a multiethnic world: U.S. metropolitan areas, 1970-80. Demography28 (1): 41-63.
12.
Downs, A.1981. Neighborhoods and urban development. Washington, DC: Brookings Institution.
13.
Eggers, M. , and D. S. Massey. 1992. A longitudinal analysis of urban poverty: Blacks in U.S. metropolitan areas between 1970 and 1980. Social Science Research21 (2): 175-203.
14.
Faris, R.E.L.1967. Chicago sociology, 1920-32. Chicago: Univ. of Chicago Press.
15.
Farley, R. C. , H. Schuman, C. Steeh, S. Bianchi, D. Colasanto, and S. Hatchett. 1978. Chocolate city, vanilla suburbs: Will the trend toward racially separate communities continue?Social Science Research7: 319-344.
16.
Farley, R. C. , C. Steeh, M. Krysan, T. Jackson, and K. Reeves. 1994. Stereotypes and segregation: Neighborhoods in the Detroit area. American Journal of Sociology100 (3): 750-780.
17.
Finkel, S. E.1995. Causal analysis with panel data. Thousand Oaks, CA: Sage.
18.
Florida, R.1986. The political economy of financial deregulation and the reorganization of housing finance in the U.S.International Journal of Urban and Regional Research10 (2): 207-231.
19.
Galster, G. C.1990. White flight from racially integrated neighborhoods in the 1970s: The Cleveland experience. Urban Studies27 (3): 385-399.
20.
Galster, G. C.1991. Federal fair housing policy: The great misapprehension. In Building foundations: Housing and federal policy, edited by D. DiPasquale and L. Keyes, 137-155. Philadelphia: Univ. of Pennsylvania Press.
21.
Galster, G. C. , and E. Hill. 1992. The metropolis in black and white. New Brunswick, NJ: Center for Urban Policy Research.
22.
Galster, G. C. , R. B. Mincy, and M. Tobin. 1997. The disparate racial neighborhood impacts of metropolitan economic restructuring. Urban Affairs Review32 (6): 797-824.
23.
Grant, D. S.1995. The political economy of business failures across the American states. American Sociological Review60 (6): 851-873.
24.
Greene, W. H.1990. Econometric analysis. New York: Macmillan.
25.
Grigsby, W. G. , M. Baratz, G. Galster, and D. Maclennan. 1987. The dynamics of neighborhood change and decline. Progress in Planning28: 1-76.
26.
Hanushek, E. A. , and J. E. Jackson. 1977. Statistical methods for social scientists. New York: Academic Press.
27.
Harrison, B. , and B. Bluestone. 1988. The great U-turn. New York: Basic Books.
28.
Harvey, D.1973. Social justice and the city. Oxford, UK: Blackwell.
29.
Harvey, D.1977. Government policies, financial institutions and neighbourhood change in United States cities. In Captive cities, edited by M. Harloe, 123-139. New York: John Wiley.
30.
Jargowsky, P.1997. Poverty and place. New York: Russell Sage.
31.
Jones, L. D.1993. Deficiency judgments and the exercise of the default option in home mortgage loans. Journal of Law and Economics36 (1): 115-138.
32.
Judge, G. G. , W. E. Griffiths, R. C. Hill, H. Lutkepohl, and T. C. Lee. 1985. The theory and practice of econometrics. New York: John Wiley.
33.
Lauria, M.1998. A new model of neighborhood change: Reconsidering the role of white flight. Housing Policy Debate9 (2): 395-424.
34.
Logan, J. , and H. Molotch. 1987. Urban fortunes: The political economy of place. Berkeley: Univ. of California Press.
35.
Markus, G. B.1979. Analyzing panel data. Beverly Hills, CA: Sage.
36.
Maruggi, V.1997. The metropolitan New Orleans economy, 1976-1995: Draft report.New Orleans, LA: Univ. of New Orleans, Division of Business and Economic Research.
37.
Massey, D. S. , and N. A. Denton. 1993. American apartheid: Segregation and the making of the underclass. Cambridge, MA: Harvard Univ. Press.
38.
Megbolugbe, I. F. , M. C. Hoek-Smit, and P. D. Linneman. 1996. Understanding neighborhood dynamics: A review of the contributions of William G. Grigsby. Urban Studies33 (10): 1779-1795.
39.
Meyerson, A.1986. The changing structure of housing finance in the U.S.International Journal of Urban and Regional Research10 (4): 465-497.
40.
Morenoff, J. M. , and M. Tienda. 1997. Underclass neighborhoods in temporal and ecological perspective. Annals of the American Association of Political and Social Sciences551: 59-72.
41.
Muth, R.1969. Cities and housing. Chicago: Univ. of Chicago Press.
42.
Ottensmann, J. R.1995. Requiem for the tipping point hypothesis. Journal of Planning Literature10 (2): 131-141.
43.
Ryan, T.1985. The New Orleans economy—What makes it tick?LA Business Survey16 (2): 3-12
44.
SAS Institute . 1993. SAS/ETS user’s guide. Version 6, 2d ed.Cary, NC: Author.
45.
Shenker, J. C. , and A. J. Colletta. 1992. Asset securitization: Evolution, current issues and new frontiers. In Legal and business aspects of the depressed real estate market, edited by J. P. Rosen and J. C. Shenker, 32-92. Englewood Cliffs, NJ: Prentice Hall.
46.
Spain, D.1979. Race relations and residential segregation in New Orleans: Two centuries of paradox. Annals of the American Academy of Political and Social Science441: 82-96.
47.
Squires, G. D.1994. Capital and communities in black and white. Albany: State Univ. of New York Press.
48.
Temkin, K. , and W. Rohe. 1996. Neighborhood change and urban policy. Journal of Planning Education and Research15 (3): 159-170.
49.
U.S. Bureau of Census . 1972. Louisiana census. Washington, DC: Author.
50.
U.S. Bureau of Census . 1982. U.S. census of population and housing (STF3A). Washington, DC: Author.
51.
U.S. Bureau of Census . 1992. U.S. census of population and housing (STF3A). Washington, DC: Author.
52.
Vernon, R.1960. Metropolis 1985. New York: Doubleday.
53.
Wilson, W. J.1987. The truly disadvantaged. Chicago: Univ. of Chicago Press.
54.
Wood, P. B. , and B. A. Lee. 1991. Is neighborhood racial succession inevitable? Forty years of evidence. Urban Affairs Quarterly26 (4): 610-620.
