Working Paper

Redlining in Boston: do mortgage lenders discriminate against neighborhoods?


Abstract: Historically, lenders have been accused of \"redlining\" minority neighborhoods as well as refusing to lend to minority applicants. Considerable bank regulation is designed to prevent both actions. However, the strong correlation between race and neighborhood makes it difficult to distinguish the impact of geographic discrimination from the effects of racial discrimination. Previous studies have failed to untangle these two influences, in part, because of severe omitted variable bias. The data set in this paper allows the distinct effects of race and geography to be identified, and it shows that the evidence for redlining is weak.

Keywords: Boston (Mass.); Discrimination in mortgage loans;

Status: Published in Quarterly Journal of Economics (November 1996)

Access Documents

File(s): File format is text/html http://www.bostonfed.org/economic/wp/wp1996/wp96_6.htm

File(s): File format is application/pdf http://www.bostonfed.org/economic/wp/wp1996/wp96_6.pdf

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Working Papers

Publication Date: 1996

Number: 96-6