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Award ID contains: 2105253

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  1. (, AEA Papers and Proceedings)
    Using data on the value of Federal Housing Administration (FHA) mortgage insurance between 1935 and 1939, I estimate the effect of the agency's program on racial disparities in home ownership and home values. The distance between an FHA office and counties within its jurisdiction is used as an instrument. I find that insurance activity had a negligible effect on the racial gap in home ownership and a sizable effect on the gap in home values. Results suggest that while African American households continued to acquire homes, they may have chosen lower-priced properties, as they lacked the same access to credit as White buyers. 
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