Question: In an analysis of rent discrimination of immigrant households living in rental housing (which are indexed by h) a researcher regresses log rental prices

In an analysis of rent discrimination of immigrant households living in rental

In an analysis of rent discrimination of immigrant households living in rental housing (which are indexed by h) a researcher regresses log rental prices on log distance from town center using the following regression equation: In(rent) Po + P In(distance from town center) + en = yielding coefficient estimates o = 11.40 and = -0.347. Provide an interpretation for size of $. The previous regression was estimated using data only on immigrant households. When using data on only native households, the slope coefficient estimate is = -0.478. What does the relationship between the immigrant and native coefficients seem to suggest about rental discrimination in the suburbs? (Assume that Bo is the same for both groups.) From these estimates, can you conclude that immigrants are discriminated against in the rental market?

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