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- W2080382160 abstract "Abstract Anas (2002) has shown that there exist equilibria with exclusion and the payments of economic transfers where whites and blacks are better off than in the case without them. Anas’ model is static so it does not consider important dynamics aspect of this phenomenon. Hence, we have developed a dynamic general equilibrium model of segregation. Our main findings are: there exists a path of transfers such as there is a dynamic equilibrium where whites and blacks are better off with exclusion and transfers; and higher levels of prejudices imply lower levels of aggregated utility. Finally, the effects of a prejudice shock can last between 2 and 30 years, hence policymakers must pay attention to sudden positive prejudice shocks in order to implement policies to reduce their consequences. Keywords: ethnic segregationprejudicesexclusionJEL Classification:: D58H23R13 Notes 1 See for instance King and Mieszkowski (Citation1973), Logan and Messner (Citation1987), Burnell (Citation1988), Borjas (Citation1995), Benabou (Citation1996), Cutler et al. (Citation1999), Nechyba (Citation1999), Madden (Citation2001), Massey (Citation2001), Wilson and Hammer (Citation2001), Yinger (Citation2001), Burton (Citation2003), Dosh (Citation2003), LaVeist (Citation2003), Bayer et al. (Citation2004), Charles et al. (Citation2004), Clapp and Ross (Citation2004), Dawkins et al. (Citation2005). 2 Anas (Citation2002) uses reasonable parameter values based on his investigations about urban models, and Heer and Maussner (Citation2005) use a long-time series average, in particular, they obtain these average values from seasonally adjusted quarterly economic data for the West German economy over the period 1975:i to 1989:iv." @default.
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- W2080382160 date "2012-06-01" @default.
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- W2080382160 title "Segregation, exclusion and compensating transfers under a dynamic setting" @default.
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