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A spatial theory of urban segregation

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  • Gian Luca Carniglia
  • Juan F. Escobar

Abstract

We provide a competitive equilibrium theory of urban segregation in a linear city. Households demand consumption and housing along the city and are exposed to neighborhood externalities. We show that equilibria that are robust to small coalitional deviations are segregated. Our results explain urban segregation in a standard neoclassical framework and shed new light on the difficulties faced by authorities to integrate cities.

Suggested Citation

  • Gian Luca Carniglia & Juan F. Escobar, 2023. "A spatial theory of urban segregation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(4), pages 653-678, August.
    • Handle: RePEc:bla:jpbect:v:25:y:2023:i:4:p:653-678
    DOI: 10.1111/jpet.12641
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