Income Sorting Across Space: The Role of Amenities and Commuting Costs

Ségrégation spatiale: Rôle des aménités et des coûts à la mobilité

Carl Gaigne, Hans Koster, Fabien Moizeau and Jacques-François Thisse
Additional contact information
Hans 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

Working Papers from HAL

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.

Keywords: Commuting; Navette; Cities; Social stratification; Income; Amenities; Villes; Stratification sociale; Revenu; Aménités; Déplacements domicile-travail (search for similar items in EconPapers)
Date: 2024-12-23
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04854393v1
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hal.inrae.fr/hal-04854393v1/document (application/pdf)

Related works:
Working Paper: Income Sorting Across Space: The Role of Amenities and Commuting Costs (2020)
Working Paper: Income Sorting Across Space: The Role of Amenities and Commuting Costs (2020)
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:hal:wpaper:hal-04854393

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().