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Fidel Ezeala-Harrison Glenda B. Glover Jane Shaw-Jackson 《The Review of Black Political Economy》2008,35(1):43-54
We apply a cross-regional probit analysis to examine the existence or otherwise of the discriminatory practice of “redlining”
in housing loan lending practices of banks in Mississippi. Data on loan denial rates across three Mississippi regions of Tri-County
Metro-Jackson, Southern Mississippi Corridor, and the Northern district are studied to determine the pattern of bank lending
activities regarding owner-occupied housing loan extensions to minority members of Mississippi's population. The purpose is
to determine the degree to which the banks have or have not observed fair and equitable lending practices toward minority
borrowers, relative to the members of the majority population. The results suggest that there is a consistently high denial
rates against minorities. The results indicate strong evidence of redlining practices in housing loan decisions, which contribute
to the growth of racial segregation in the state.
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