The paper presents a continuous-time dynamic model of a neighborhood in racial transition as triggered by a fee-motivated real estate broker. Racial transition occurs in an initially all-white neighborhood when the broker steers white sellers towards black buyers. Racial transition leads to a...

How do credit standards affect racial segregation? During the latest US mortgage credit boom, metropolitan areas that experienced larger increases in loan-to-income ratios and acceptance rates also experienced smaller declines in Black segregation. Bank liquidity and loan securitizability...