Data and code for "On the Impact of Federal Housing Policies on Racial Inequality"

Using data on the value of Federal Housing Administration 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.