Home Insurance in a Changing Residential Community a System Dynamics Approach

Cover Home Insurance in a Changing Residential Community a System Dynamics Approach
Home Insurance in a Changing Residential Community a System Dynamics Approach
Jack B Homer
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In terms of variables in INSUR2, the average social class declines, the lower class fraction increases, and class disparity increases. These changes can lead to a lower quality of life through the channels shown in Figure 5, along with the direct effect of a growing lower class population on property crime. A lower quality of life will, in turn, speed the population transition, primarily because the three social classes have different levels of expectation or tolerance.
Of the population variab
...les mentioned above, class disparity has the greatest potential for danage, for the following reasons: (1 ) The degree of heterogeneity will change more quickly than either the lower class fraction or the average social class, for example, it may only take a small inflow of "undesirables" into a formerly pristine neighborhood to produce polarization and a feeling that the neighborhood has been invaded; D-3180 49 Housing Transition t © Housing Conditions Owner- — Occupancy +, :^ Population Transition Company Profits Quality of eighborhood Life Figure 15: The Role of Quality of Neighborhood Life in the Transition D-3180 50 (2) Class disparity is the most important element of neighborhood cohesiveness, and a decline in average social class or an increase in crime might actually tend to increase cohesiveness; (3) By decreasing neighborhood cohesiveness, an increasing level of class disparity can affect the quality of neighborhood life adversely by both decreasing residential stability and increasing factionalization within and ineffectiveness of community organizations that provide services.

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