Steven Durlauf Santa Fe Institute SBR-9631610 This research will investigate several topics in the area of inequality and segregation, focusing on a theoretical and mathematical model. These topics include: poverty, out-of- wedlock births, dropping out of high school, and affirmative action. An econometric model will be developed which allows for spillovers in neighborhood influences relative to these topics. The work will attempt to identify the effects of changes in the distribution of individual choices and the social interaction effects of individuals and peer groups. The affirmative action part of the research will look at the intergenerational consequences of affirmative action.
