Scholars@Duke
Patrick Bayer

Patrick Bayer

Gilhuly Family Distinguished Professor in Economics
Economics
patrick.bayer@duke.edu
Box 90097, Durham, NC 27708-0097
236 Social Sciences, Box 90097, Durham, NC 27708

Selected Publications

Divergent paths: A new perspective on earnings differences between black and white men since 1940

Journal Article Quarterly Journal of Economics · January 1, 2018 We present new evidence on the evolution of black-white earnings differences among all men, including both workers and nonworkers. We study two measures: (i) the level earnings gap-the racial earnings difference at a given quantile; and (ii) the earnings r ... Full text Cite

Racial and ethnic price differentials in the housing market

Journal Article Journal of Urban Economics · November 1, 2017 Do minorities pay more than whites for similar housing? We revisit this important question using a rich new dataset that covers two million repeat-sales housing transactions drawn from four major metropolitan areas. Our analysis applies a repeat-sales fram ... Full text Cite

The Vulnerability of Minority Homeowners in the Housing Boom and Bust: Corrigendum

Other American Economic Journal: Economic Policy · February 2017 Full text Cite

Estimation of dynamic discrete choice models in continuous time with an application to retail competition

Journal Article Review of Economic Studies · July 1, 2016 This article develops a dynamic model of retail competition and uses it to study the impact of the expansion of a new national competitor on the structure of urban markets. In order to accommodate substantial heterogeneity (both observed and unobserved) ac ... Full text Cite

A Dynamic Model of Demand for Houses and Neighborhoods

Journal Article Econometrica · May 1, 2016 This paper develops a dynamic model of neighborhood choice along with a computationally light multi-step estimator. The proposed empirical framework captures observed and unobserved preference heterogeneity across households and locations in a flexible way ... Full text Cite

A Jury of Her Peers: The Impact of the First Female Jurors on Criminal Convictions

Other Economic Research Initiatives at Duke (ERID) · February 10, 2016 This paper uses an original data set of more than 3000 cases from 1918 to 1926 in the Central Criminal Courts of London to study the effect of the Sex Disqualification (Removal) Act of 1919. Implemented in 1921, this Act made females eligible to serve on E ... Cite

The Vulnerability of Minority Homeowners in the Housing Boom and Bust

Journal Article American Economic Journal: Economic Policy · February 2016 Full text Open Access Cite

Speculative Fever: Investor Contagion in the Housing Bubble

Other Economic Research Initiatives at Duke (ERID) · February 1, 2016 Historical anecdotes of new investors being drawn into a booming asset market, only to suffer when the market turns, abound. While the role of investor contagion in asset bubbles has been explored extensively in the theoretical literature, causal empirical ... Open Access Cite

What Drives Racial and Ethnic Differences in High Cost Mortgages? The Role of High Risk Lenders

Other Economic Research Initiatives at Duke (ERID) · February 1, 2016 This paper examines racial and ethnic differences in high cost mortgage lending in seven diverse metropolitan areas from 2004-2007. Even after controlling for credit score and other key risk factors, African-American and Hispanic home buyers are 105 and 78 ... Cite

Politics in the Courtroom: Political Ideology and Jury Decision Making

Journal Article Economic Research Initiatives at Duke (ERID) · April 1, 2015 This paper uses data from the Gothenburg District Court in Sweden and a research design that exploits the random assignment of politically appointed jurors (termed nämndemän) to make three contributions to the literature on jury decision-making: (i) an ass ... Cite

Speculators and Middlemen: The Strategy and Performance of Investors in the Housing Market

Other Economic Research Initiatives at Duke (ERID) Working Paper · January 13, 2015 Cite

Endogenous Sources of Volatility in Housing Markets: The Joint Buyer-Seller Problem

Other Economic Research Initiatives at Duke (ERID) · December 5, 2014 This paper presents new empirical evidence that internal movement - selling one home and buying another - by existing homeowners within a metropolitan housing market is especially volatile and the main driver of fluctuations in transaction volume over the ... Cite

The Role of Age in Jury Selection and Trial Outcomes

Journal Article The Journal of Law and Economics · November 2014 Full text Open Access Cite

Estimating Racial Price Differentials in the Housing Market

Other Economic Research Initiatives at Duke (ERID) · March 1, 2013 This paper uses unique panel data covering over two million repeat-sales housing transactions from four metropolitan areas to test for the presence of racial price differentials in the housing market. Drawing on the strengths of these data, our research de ... Open Access Cite

Approximating High-Dimensional Dynamic Models: Sieve Value Function Iteration

Journal Article Advances in Econometrics · January 1, 2013 Many dynamic problems in economics are characterized by large state spaces which make both computing and estimating the model infeasible. We introduce a method for approximating the value function of highdimensional dynamic models based on sieves and estab ... Full text Open Access Cite

Tiebout sorting and neighborhood stratification

Journal Article Journal of Public Economics · December 1, 2012 Tiebout's classic 1956 paper has strong implications regarding stratification across and within jurisdictions, predicting in the simplest instance a hierarchy of internally homogeneous communities ordered by income. Typically, urban areas are less than ful ... Full text Cite

Price Discrimination in the Housing Market

Other Economic Research Initiatives at Duke (ERID) · May 1, 2012 This paper sets out a new research design to test for price discrimination by sellers in the housing market. The design controls carefully for unobserved differences in the quality of neighborhoods and homes purchased by buyers of each race, using novel pa ... Open Access Cite

The impact of jury race in criminal trials

Journal Article Quarterly Journal of Economics · May 1, 2012 This article examines the impact of jury racial composition on trial outcomes using a data set of felony trials in Florida between 2000 and 2010. We use a research design that exploits day-to-day variation in the composition of the jury pool to isolate qua ... Full text Cite

A Fair and Impartial Jury? The Role of Age in Jury Selection and Trial Outcomes

Other Economic Research Initiatives at Duke (ERID) · February 1, 2012 This paper uses data from over 700 felony trials in Sarasota and Lake Counties in Florida from 2000-2010 to examine the role of age in jury selection and trial outcomes. The results of the analysis imply that prosecutors are more likely to use their peremp ... Open Access Cite

Nonparametric identification and estimation in a Roy model with common nonpecuniary returns

Journal Article Journal of Business and Economic Statistics · April 1, 2011 We consider identification and estimation of a Roy model that includes a common nonpecuniary utility component associated with each choice alternative. This augmented Roy model has broader applications to many polychotomous choice problems in addition to o ... Full text Cite

Dynamic asset pricing in a system of local housing markets

Journal Article American Economic Review · May 1, 2010 Full text Open Access Cite

Beyond Signaling and Human Capital: Education and the Revelation of Ability

Journal Article American Economic Journal: Applied Economics · 2010 Open Access Link to item Cite

The effects of financial education in the workplace: Evidence from a survey of employers

Journal Article Economic Inquiry · October 1, 2009 We examine the effects of education on financial decision-making skills by identifying an interesting source of variation in pertinent training. During the 1990s, an increasing number of individuals were exposed to programs of financial education provided ... Full text Open Access Cite

Migration and hedonic valuation: The case of air quality

Journal Article Journal of Environmental Economics and Management · July 1, 2009 Conventional hedonic techniques for estimating the value of local amenities rely on the assumption that households move freely among locations. We show that when moving is costly, the variation in housing prices and wages across locations may no longer ref ... Full text Open Access Cite

Building criminal capital behind bars: Peer effects in juvenile corrections

Journal Article Quarterly Journal of Economics · February 1, 2009 This paper analyzes the influence that juvenile offenders serving time in the same correctional facility have on each other's subsequent criminal behavior. The analysis is based on data on over 8,000 individuals serving time in 169 juvenile correctional fa ... Full text Open Access Cite

Distinguishing racial preferences in the housing market: Theory and evidence

Chapter · December 1, 2008 Given the extent of residential segregation on the basis of race and ethnicity in U.S. cities, it is unsurprising that a long line of research in social science has attempted to better-understand the causes and consequences of segregation. One prominent br ... Full text Cite

Place of work and place of residence: Informal hiring networks and labor market outcomes

Journal Article Journal of Political Economy · December 1, 2008 We use a novel research design to empirically detect the effect of social interactions on labor market outcomes. Using Census data on residential and employment locations, we examine whether individuals residing in the same city block are more likely to wo ... Full text Open Access Cite

A unified framework for measuring preferences for schools and neighborhoods

Journal Article Journal of Political Economy · October 23, 2007 This paper develops a framework for estimating household preferences for school and neighborhood attributes in the presence of sorting. It embeds a boundary discontinuity design in a heterogeneous residential choice model, addressing the endogeneity of sch ... Full text Open Access Cite

Estimating equilibrium models of sorting across locations

Journal Article Economic Journal · March 1, 2007 While there is growing interest in measuring the size and scope of local spillovers, it is well understood that such spillovers cannot be distinguished from unobservable local attributes using solely the observed location decisions of individuals or firms. ... Full text Open Access Cite

The effectiveness of juvenile correctional facilities: Public versus private management

Journal Article Journal of Law and Economics · October 1, 2005 This paper uses data on juvenile offenders released from correctional facilities in Florida to explore the effects of facility management type (private for-profit, private nonprofit, public state-operated, and public county-operated) on recidivism outcomes ... Full text Open Access Cite

On the equilibrium properties of locational sorting models

Journal Article Journal of Urban Economics · May 1, 2005 Important to many models of location choice is the role of local interactions or spillovers, whereby the payoffs from choosing a location depend in part on the number or attributes of other individuals or firms that choose the same or nearby locations in e ... Full text Cite

What drives racial segregation? New evidence using Census microdata

Journal Article Journal of Urban Economics · November 1, 2004 Using restricted Census microdata that link households to the Census block in which they live, this paper re-examines the question of whether racial differences in sociodemographic characteristics can explain observed levels of racial segregation. We devel ... Full text Cite

Racial Sorting and Neighborhood Quality

Other In cities throughout the United States, blacks tend to live in significantly poorer and lower-amenity neighborhoods than whites. An obvious first-order explanation for this is that an individual%u2019%u2019s race is strongly correlated with socioeconomic s ... Open Access Link to item Cite

Jury Discrimination in Criminal Trials

Other This paper examines the impact of jury racial composition on trial outcomes using a unique dataset of all felony trials in Sarasota County, Florida between 2004 and 2009. We utilize a research design that exploits day-to-day variation in the composit ... Cite

Identifying Individual and Group Effects in the Presence of Sorting: A Neighborhood Effects Application

Scholarly Edition Researchers have long recognized that the non-random sorting of individuals into groups generates correlation between individual and group attributes that is likely to bias naive estimates of both individual and group eff ... Open Access Cite