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Local Amenities, Commuting Costs and Income Disparities Within Cities

Abstract : This paper studies the effect of transportation networks on spatial inequality within metropolitan areas. It uses a spatial equilibrium model featuring nonhomotheticities and worker heterogeneity, allowing to capture rich patterns of workers sorting on commuting costs and amenities. The model is calibrated for the Paris urban area. Counterfactual simulations study the effects of a) the Regional Express Rail and b) restricting car use in the city center. Despite a strong contribution to suburbanization and reducing welfare inequality, the public transport network plays no role in reducing income segregation. The effects of banning cars depends critically on the response of residential amenities in the city. If it is low enough, it reduces income disparities between Paris and its suburbs at the cost of a substantial welfare loss. If it is high enough, the policy creates welfare gains but steepens the income gradient.
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https://halshs.archives-ouvertes.fr/halshs-03082448
Contributor : Nelly Wirth <>
Submitted on : Friday, December 18, 2020 - 3:51:40 PM
Last modification on : Wednesday, January 6, 2021 - 3:28:17 AM

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  • HAL Id : halshs-03082448, version 1

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Morgan Ubeda. Local Amenities, Commuting Costs and Income Disparities Within Cities. 2020. ⟨halshs-03082448⟩

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