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Modeling the spatial dynamics of income in cities

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  • Vincent Verbavatz
  • Marc Barthelemy

Abstract

Urban inequality is a major challenge for cities in the 21st century. This inequality is reflected in the spatial income structure of cities which evolves in time through various processes. Gentrification is a well-known illustration of these dynamics in which the population of a low-income area changes as wealthier residents arrive and old-settled residents are expelled. Less understood but very important is the reverse process of gentrification through which areas of cities get impoverished. Gentrification has been widely studied among social sciences, especially in case studies, but there have been fewer quantitative analyses of this phenomenon, and more generally about the spatial dynamics of income in cities. Here, we first propose a quantitative analysis of these income dynamics in cities based on household incomes in 45 American and nine French Functional Urban Areas (FUA). We found that an important ingredient that determines the evolution of the income level of an area is the income level of its immediate neighboring areas. This empirical finding leads to the idea that these dynamics can be modeled by the voter model of statistical physics. We show that such a model constitutes an interesting tool for both describing and predicting evolution scenarios of urban areas with a very limited number of parameters (two for the United States and one for France). We illustrate our results by computing the probability that areas will change their income status in the case of Boston and Paris at the horizon of 2030.

Suggested Citation

  • Vincent Verbavatz & Marc Barthelemy, 2024. "Modeling the spatial dynamics of income in cities," Environment and Planning B, , vol. 51(1), pages 128-139, January.
  • Handle: RePEc:sae:envirb:v:51:y:2024:i:1:p:128-139
    DOI: 10.1177/23998083231171397
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    References listed on IDEAS

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    1. Guerrieri, Veronica & Hartley, Daniel & Hurst, Erik, 2013. "Endogenous gentrification and housing price dynamics," Journal of Public Economics, Elsevier, vol. 100(C), pages 45-60.
    2. Ioannides, Yannis M. & Zabel, Jeffrey E., 2008. "Interactions, neighborhood selection and housing demand," Journal of Urban Economics, Elsevier, vol. 63(1), pages 229-252, January.
    3. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    4. Luca Pattaroni & Vincent Kaufmann & Marie-Paule Thomas, 2012. "The Dynamics of Multifaceted Gentrification: A Comparative Analysis of the Trajectories of Six Neighbourhoods in the Île-de-France Region," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 36(6), pages 1223-1241, November.
    5. Adri'an Carro & Ra'ul Toral & Maxi San Miguel, 2016. "The noisy voter model on complex networks," Papers 1602.06935, arXiv.org, revised Apr 2016.
    6. Joseph Gibbons & Michael Barton & Elizabeth Brault, 2018. "Evaluating gentrification’s relation to neighborhood and city health," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-18, November.
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