Of neighborhood change and segregation. Our key assumption in this paper is that neighborhood characteristics attract, repel, constrain, and enable individuals of varying kinds to move or stay. The effects of neighborhood characteristics on decisions whether or not to move into neighborhoods are the main focus of analysis. This is in contrast to the more common approach in the sociological literature, which is to emphasize the types of individuals who move into a given neighborhood type (e.g., South and Crowder 1998b). Analyses that focus on what types of individuals move into what kinds of neighborhoods are useful for describing groupNIH-PA Author Manuscript NIH-PA Author Manuscript NIH-PA Author ManuscriptSociol Methodol. Author manuscript; available in PMC 2013 March 08.Bruch and MarePagedifferences in transition probabilities. For a broad array of questions, however, it is preferable to focus instead upon how HS-173 side effects variation in neighborhood characteristics accounts for population movement. This approach shows not only how individuals are more or less likely to move into different neighborhood types, but also to how the moves of individuals lead to changes in neighborhoods, which alter both residential patterns and also the relative attractiveness of neighborhoods for future movers. Of course individuals do vary in their preferences for different kinds of neighborhoods. For example, blacks may respond to the proportion of persons in a neighborhood who are black in a substantially different way from how whites respond. Moreover, individuals may have unique responses to neighborhood characteristics that are not measured by characteristics such as their race-ethnicity, socioeconomic status, etc. For analytic purposes, the latter type of variation may be regarded as unobserved random heterogeneity in individuals’ responses. Whether systematic or random, however, these kinds of variations enter our models as interactions between get CPI-455 individual characteristics and the attributes of neighborhoods. Once a set of residential preference or choice models have been estimated, one may draw inferences about aggregate neighborhood change (e.g., Farley and Frey 1994). In some studies this is done by inspection of the coefficients or predicted probabilities derived from elementary regression models. However, this approach does not take account of the fact that residential mobility evolves dynamically through the interdependent actions of a population of individuals. Each individual or household both responds to and also affects the composition of their origin and destination neighborhoods. The set of choices confronted by individuals or households in any moment is generated from the choices of others in the past. For this reason a more elaborate set of methods that link individual choice to aggregate change must be considered. The models of residential preference and choice discussed in this paper provide a basis for this type of extrapolation from individual behavior to neighborhood change. With suitable modification, the methods and analytical models introduced here are more generally applicable to the study of individual choice in a social context. In many instances individuals choose from a set of alternatives, such as the decision to go to college or to take a particular job, the choice of a dating or marriage partner, and decisions to join a social movement or vote in a particular way. In most of these cases, the choices of one person may affect the opp.Of neighborhood change and segregation. Our key assumption in this paper is that neighborhood characteristics attract, repel, constrain, and enable individuals of varying kinds to move or stay. The effects of neighborhood characteristics on decisions whether or not to move into neighborhoods are the main focus of analysis. This is in contrast to the more common approach in the sociological literature, which is to emphasize the types of individuals who move into a given neighborhood type (e.g., South and Crowder 1998b). Analyses that focus on what types of individuals move into what kinds of neighborhoods are useful for describing groupNIH-PA Author Manuscript NIH-PA Author Manuscript NIH-PA Author ManuscriptSociol Methodol. Author manuscript; available in PMC 2013 March 08.Bruch and MarePagedifferences in transition probabilities. For a broad array of questions, however, it is preferable to focus instead upon how variation in neighborhood characteristics accounts for population movement. This approach shows not only how individuals are more or less likely to move into different neighborhood types, but also to how the moves of individuals lead to changes in neighborhoods, which alter both residential patterns and also the relative attractiveness of neighborhoods for future movers. Of course individuals do vary in their preferences for different kinds of neighborhoods. For example, blacks may respond to the proportion of persons in a neighborhood who are black in a substantially different way from how whites respond. Moreover, individuals may have unique responses to neighborhood characteristics that are not measured by characteristics such as their race-ethnicity, socioeconomic status, etc. For analytic purposes, the latter type of variation may be regarded as unobserved random heterogeneity in individuals’ responses. Whether systematic or random, however, these kinds of variations enter our models as interactions between individual characteristics and the attributes of neighborhoods. Once a set of residential preference or choice models have been estimated, one may draw inferences about aggregate neighborhood change (e.g., Farley and Frey 1994). In some studies this is done by inspection of the coefficients or predicted probabilities derived from elementary regression models. However, this approach does not take account of the fact that residential mobility evolves dynamically through the interdependent actions of a population of individuals. Each individual or household both responds to and also affects the composition of their origin and destination neighborhoods. The set of choices confronted by individuals or households in any moment is generated from the choices of others in the past. For this reason a more elaborate set of methods that link individual choice to aggregate change must be considered. The models of residential preference and choice discussed in this paper provide a basis for this type of extrapolation from individual behavior to neighborhood change. With suitable modification, the methods and analytical models introduced here are more generally applicable to the study of individual choice in a social context. In many instances individuals choose from a set of alternatives, such as the decision to go to college or to take a particular job, the choice of a dating or marriage partner, and decisions to join a social movement or vote in a particular way. In most of these cases, the choices of one person may affect the opp.