Neighborhood Development and Local Credit Markets

Hula, Richard C.

doi:10.1177/004208169102700207

Cited by 27 publications

(7 citation statements)

References 7 publications

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“…Second, many analysts failed to include measures of mortgage loan demand. Third, statistical models have been maligned for sensitivity to functional-form bias (Hula 1991;Galster 1992b) and omitted-variable bias (Perle et al 1993). Specifically, when models include indicators of neighborhood-related factors that lenders can legitimately consider to affect the risk of loan default, the effect of racial composition decreases dramatically or disappears.…”

Section: Discrimination In Mortgage Lending: the Evidencementioning

confidence: 99%

Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio

Holloway¹

1998

Annals of the Association of American Geographers

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Discrimination in mortgage lending on the basis of race and the racial composition of neighborhoods has emerged as a hotly debated issue over the last several years. Part of the problem with the existing debate, however, is that the geographically contingent nature of discrimination has not been recognized. This paper argues that discrimination motivated by prejudice is contingent on the racial composition of neighborhoods-i.e., that lending institutions treat black mortgage applicants differently when buying homes in white neighborhoods than when buying homes in black neighborhoods. Using a sample of mortgage applicants drawn from the 1992 individual-level Home Mortgage Disclosure Act (HMDA) data for the Columbus, Ohio metropolitan area, I found that the effect of being black on the conditional probability of having a loan application denied is much higher in all-white neighborhoods than in minority neighborhoods, especially for applicants making large loan requests. I also found that white applicants for small loans had a higher conditional denial probability in minority neighborhoods than in all-white neighborhoods. Moreover, both race-based and neighborhood-based discrimination appear not to exist until the interaction between race and neighborhood is accounted for. The implications of the findings are clear-we must consider the geographically contingent nature of prejudice and discrimination in order to understand the factors that produce and maintain extremely high levels of segregation in our metropolitan areas.

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Section: Discrimination In Mortgage Lending: the Evidencementioning

confidence: 99%

Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio

Holloway¹

1998

Annals of the Association of American Geographers

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“…Schill and Wachter (1993), in an analysis of Boston and Philadelphia, find no evidence of racial bias when modeling application denials but report on other studies that have uncovered such bias when using measures of loan volume. This indicates that local contexts certainly differ, a point made forcefully by Shlay et al (1992) in a discussion of Hula's (1991) analysis of a national data set of over 40,000 census tracts. And it once again confirms how the use of different dependent variables produces contrasting findings.…”

Section: Dimensions Of Mortgage Activitymentioning

confidence: 97%

What is Measured in Measuring the Mortgage Market

Kaplan

1996

The Professional Geographer

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Mortgage activity has commonly been measured with two variables: the volume of loans and the success rate of applications. I argue that these measurements represent distinct portions of the overall mortgage market and correspond to different social, racial, and economic attributes. Using Home Mortgage Disclosure Act data for 1991 and 1992 in the Minneapolis‐St. Paul metropolitan area, I compare a variable measuring the percentage of loan applications denied with a variable measuring the number of loans per 1,000 housing units. I find that these two variables display disparate spatial patterns, that they are associated with different census tract characteristics, and that they correspond to separate dimensions of social geography. These differences suggest that the evaluation of bank performance in meeting fair housing objectives depends on how this performance is measured. Both measurements are useful, but care must be taken in their application.

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“…The potential for second stage development practices to contribute to national growth can be established by considering the ways they sought to improve efficiency of firms. Providing capital to businesses with growth potential has been efficient when capital markets failed to recognize the firm's earning potential or when growth potential in minority communities was not recognized by capital markets (Hula, 1991). public private partnerships similarly provided gap financing for firms that could provide significant externalities but for a small injection of public assistance.…”

Section: Changing Local Economic Development Practices Improved Natiomentioning

confidence: 99%

How Local Competition for Economic Activity Affects National Competitiveness

Blair¹

2004

Competitiveness Review

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. EXECUTIVE SUMMARYThere are numerous reasons that may explain why the U.S. economy has performed well during the past twenty-five years. One likely reason is that local economic development practices have enhanced American competitiveness. The first section develops a game theoretic model that show how local economic practices can result in either negative or positive sum outcomes for the nation as a whole. The second section describes how local economic development practices towards practices that are likely to result in better aggregate economic performance. The strong performance of the U.S. economy roughly coincides with the more efficient practices. The final section examines further practices that may make local economic stimulus more efficient.

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Neighborhood Development and Local Credit Markets

Cited by 27 publications

References 7 publications

Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio

Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio

What is Measured in Measuring the Mortgage Market

How Local Competition for Economic Activity Affects National Competitiveness

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