IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-04854393.html
   My bibliography  Save this paper

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 - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - 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
    as

    Download full text from publisher

    File URL: https://hal.inrae.fr/hal-04854393v1/document
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:wpaper:hal-04854393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.