Download Any Book Income Growth and the Distributional Effects of Urban Spatial Sorting
Income Growth and the Distributional Effects of Urban Spatial Sorting High quality books Income Growth and the Distributional Effects of Urban Spatial Sorting By:Victor Couture,Cécile Gaubert,Jessie Handbury,Erik Hurst Published on 2019 by We explore the impact of rising incomes at the top of the distribution on spatial sorting patterns within large U.S. cities. We develop and quantify a spatial model of a city with heterogeneous agents and nonhomothetic preferences for locations with different amenities of endogenous quality. As the rich get richer, their increased demand for luxury amenities available downtown drives housing prices up in downtown areas. The poor are made worse off, either being displaced or paying higher rents for amenities that they do not value as much. Endogenous provision of private amenities amplifies the mechanism, while public provision of other amenities in part curbs it. We quantify the corresponding impact on well-being inequality. Through the lens of the q...