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Credit rationing, deregulation and race in mortgage lending in the United States: 1960-90

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  • H. Naci Mocan
  • W. James Smith
  • William Tevebaugh

Abstract

This paper examines discrimination in mortgage lending in teh United States over three decades in 1960 to 1990. We focus on whether deregulation, increased Federal oversight and enhanced competition reduce discrimination as becker's theory suggests (Becker, 1971). We find that discrimination is evident over the three decades taken together, is prevalent from 1960 to 1980, but is absent in the data from 1980 to 1990. This finding strongly supports Becker' hypothesis. Preferences for discrimination appear to be offset by the higher costs fo engaging in them after 1980.

Suggested Citation

  • H. Naci Mocan & W. James Smith & William Tevebaugh, 1997. "Credit rationing, deregulation and race in mortgage lending in the United States: 1960-90," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1337-1342.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1337-1342
    DOI: 10.1080/00036849700000024
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    References listed on IDEAS

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    1. Noulas, Athanasios G & Ray, Subhash C & Miller, Stephen M, 1990. "Returns to Scale and Input Substitution for Large U.S. Banks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 22(1), pages 94-108, February.
    2. Stuart A. Gabriel & Stuart S. Rosenthal, 1991. "Credit rationing, race, and the mortgage market," Journal of Urban Economics, Elsevier, vol. 29(3), pages 371-379, May.
    3. Black, Harold & Schweitzer, Robert L & Mandell, Lewis, 1978. "Discrimination in Mortgage Lending," American Economic Review, American Economic Association, vol. 68(2), pages 186-191, May.
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