 Modeling urban housing market dynamics: Can the socio-spatial segregation preserve some social diversity?Laetitia Gauvin, Annick Vignes () and Jean-Pierre Nadal () Journal of Economic Dynamics and Control, 2013, vol. 37, issue 7, 1300-1321 Abstract: Addressing issues of social diversity, we introduce a model of housing transactions between agents who are heterogeneous in their willingness to pay. A key assumption is that agents' preferences for a location depend on both an intrinsic attractiveness and on the social characteristics of the neighborhood. The stationary space distribution of income is analytically and numerically characterized. The main results are that socio-spatial segregation occurs if – and only if – the social influence is strong enough, but even so, some social diversity is preserved at most locations. Comparison with data on the Paris housing market shows that the results reproduce general trends of price distribution and spatial income segregation. Keywords: Housing market model; Income segregation; Social diversity; Agent-based model (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:37:y:2013:i:7:p:1300-1321 DOI: 10.1016/j.jedc.2013.03.001 Access Statistics for this article Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok More articles in Journal of Economic Dynamics and Control from Elsevier |
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