A spatial theory of urban segregation |
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| Authors: | Gian Luca Carniglia Juan F Escobar |
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| Institution: | 1. Business School, Adolfo Ibañez University, Peñalolén, Chile;2. Department of Industrial Engineering, University of Chile, Santiago, Chile |
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| 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. |
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| Keywords: | homophily residential segregation spatial externalities |
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