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Within-city variation in urban decline: the case of Detroit

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Listed:
  • Veronica Guerrieri
  • Daniel Hartley
  • Erik Hurst

Abstract

When a city experiences a decline in income or population, do all neighborhoods within the city decline equally? Or do some neighborhoods decline more than others? What are the characteristics of the neighborhoods that decline the most? We answer these questions by looking at what happened to neighborhoods within Detroit as the city experienced a sharp decline in income and population from the 1980s to the late 2000s. We find patterns of changes in income and population that are consistent with the model and empirical patterns of gentrification presented in Guerrieri, Hartley, and Hurst (2011), only playing out in reverse.

Suggested Citation

  • Veronica Guerrieri & Daniel Hartley & Erik Hurst, 2012. "Within-city variation in urban decline: the case of Detroit," Working Paper 1205, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:1205
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    References listed on IDEAS

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    1. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    2. Esteban Rossi-Hansberg & Pierre-Daniel Sarte & Raymond Owens, 2010. "Housing Externalities," Journal of Political Economy, University of Chicago Press, vol. 118(3), pages 485-535, June.
    3. Enrico Moretti, 2013. "Real Wage Inequality," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 65-103, January.
    4. Edward L. Glaeser & Giacomo A. M. Ponzetto, 2010. "Did the Death of Distance Hurt Detroit and Help New York?," NBER Chapters,in: Agglomeration Economics, pages 303-337 National Bureau of Economic Research, Inc.
    5. Matthew J. Notowidigdo, 2011. "The Incidence of Local Labor Demand Shocks," 2011 Meeting Papers 629, Society for Economic Dynamics.
    6. Guerrieri, Veronica & Hartley, Daniel & Hurst, Erik, 2013. "Endogenous gentrification and housing price dynamics," Journal of Public Economics, Elsevier, vol. 100(C), pages 45-60.
    7. repec:rim:rimwps:34-08 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Kyle Fee & Daniel Hartley, 2012. "The relationship between city center density and urban growth or decline," Working Paper 1213, Federal Reserve Bank of Cleveland.
    2. Guerrieri, Veronica & Hartley, Daniel & Hurst, Erik, 2013. "Endogenous gentrification and housing price dynamics," Journal of Public Economics, Elsevier, vol. 100(C), pages 45-60.
    3. Wardrip, Keith & Hunt, Robert M., 2013. "Residential Migration, Entry, and Exit as Seen Through the Lens of Credit Bureau Data," Payment Cards Center Discussion Paper 13-4, Federal Reserve Bank of Philadelphia.
    4. Lena Edlund & Cecilia Machado & Maria Micaela Sviatschi, 2015. "Bright Minds, Big Rent: Gentrification and the Rising Returns to Skill," NBER Working Papers 21729, National Bureau of Economic Research, Inc.
    5. Hartley, Daniel, 2013. "Urban decline in rust-belt cities," Economic Commentary, Federal Reserve Bank of Cleveland, issue May.
    6. Paul E. Carrillo & Erik Robert De Wit & William D. Larson, 2012. "Can Tightness in the Housing Market Help Predict Subsequent Home Price Appreciation? Evidence from the U.S. and the Netherlands," Working Papers 2012-11, The George Washington University, Institute for International Economic Policy.
    7. Stuart Gabriel & Owen Hearey & Matthew E. Kahn & Ryan K. Vaughn, 2016. "Public School Quality Valuation Over the Business Cycle," NBER Working Papers 22668, National Bureau of Economic Research, Inc.
    8. Paul E. Carrillo & Eric R. Wit & William Larson, 2015. "Can Tightness in the Housing Market Help Predict Subsequent Home Price Appreciation? Evidence from the United States and the Netherlands," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(3), pages 609-651, September.

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    Keywords

    Housing ; Demography ; Regional economics ; Detroit (Mich.);

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