A spatial theory of urban segregation

Gian Luca Carniglia and Juan F. Escobar

Journal of Public Economic Theory, 2023, vol. 25, issue 4, 653-678

Abstract: We provide a competitive equilibrium theory of urban segregation in a linear city. Households demand consumption and housing along the city and are exposed to neighborhood externalities. We show that equilibria that are robust to small coalitional deviations are segregated. Our results explain urban segregation in a standard neoclassical framework and shed new light on the difficulties faced by authorities to integrate cities.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:25:y:2023:i:4:p:653-678

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