Second-Hand Gentrification: Theory and Evidence from High-Speed Rail Extensions

Gabriel Loumeau and Antonio Russo ()
Additional contact information
Antonio Russo: Department of Economics, University of Sheffield, Sheffield S1 4DT, UK.

No 2023011, Working Papers from The University of Sheffield, Department of Economics

Abstract: Does gentrification spread along intercity transport connections? We consider a model with heterogeneous individuals populating a primary and a secondary city. By reducing intercity commuting costs, transport connections induce mi- gration of skilled individuals towards the secondary city, which increases housing prices. We call this effect second-hand gentrification. We confirm these predictions using the 2017 expansion of the French HSR network from Paris to Bordeaux and Rennes. We find that the HSR connection induced skilled Parisians to move to Bordeaux and Rennes. Housing prices there consequently increased (+10.6%), as well as the median income (+2.5%), and within-neighborhood income inequality (+2%).

Keywords: Gentrification; High-Speed Rail; Housing Market; Intercity Travel (search for similar items in EconPapers)
JEL-codes: R11 R23 R41 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2023-05
New Economics Papers: this item is included in nep-des, nep-geo, nep-tre and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.sheffield.ac.uk/economics/research/serps First version, May 10 2023 (application/pdf)

Related works:
Working Paper: Second-Hand Gentrification: Theory and Evidence from High-Speed Rail Extensions (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2023011

Access Statistics for this paper

More papers in Working Papers from The University of Sheffield, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Mike Crabtree ().