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Income Sorting Across Space: The Role of Amenities and Commuting Costs
[Ségrégation spatiale : Rôle des aménités et des coûts à la mobilité]

Author

Listed:
  • Carl Gaigne

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - INSTITUT AGRO Agrocampus Ouest - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, Laval University, Quebec, Canada)

  • Hans R A Koster

    (VU - Vrije Universiteit Amsterdam [Amsterdam], Tinbergen Institute - Tinbergen Institute)

  • Fabien Moizeau

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Jacques-François Thisse

    (HSE - Vysšaja škola èkonomiki = National Research University Higher School of Economics [Moscow], CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain)

Abstract

We study the sorting of skill/income-heterogeneous consumers within and between cities. We allow for non-homothetic preferences and locations that are differentiated by their accessibility to exogenous amenities and distance to employment centers, where production is subject to local externalities. The residential equilibrium is driven by the properties of an amenity-commuting aggregator obtained from the primitives of the model. Using the model's structure and estimated parameters based on micro-data for the Netherlands, we predict that exogenous amenities are a key driver of spatial sorting. Our general equilibrium counterfactual analysis shows that in the absence of amenities, the GDP increases by 10% because commutes are shorter. However, income segregation rises and 95% of consumers are worse-off.

Suggested Citation

  • Carl Gaigne & Hans R A Koster & Fabien Moizeau & Jacques-François Thisse, 2024. "Income Sorting Across Space: The Role of Amenities and Commuting Costs [Ségrégation spatiale : Rôle des aménités et des coûts à la mobilité]," Working Papers hal-04854393, HAL.
    • Handle: RePEc:hal:wpaper:hal-04854393
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04854393v1
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    Keywords

    Commuting; Navette; Cities; Social stratification; Income; Amenities; Villes; Stratification sociale; Revenu; Aménités; Déplacements domicile-travail;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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