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Local Amenities, Commuting Costs and Income Disparities Within Cities

Author

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  • Morgan Ubeda

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper studies the effect of transportation networks on spatial inequalities and redistribution within metropolitan areas. To do so, I build and calibrate a spatial equilibrium model of a city that features non-homotheticities and worker heterogeneity, allowing to capture rich patterns of workers sorting on commute costs and amenities. I then calibrate the model to the Paris urban area and use counterfactual simulations to study the effects of a) the Regional Express Rail and b) restricting car use in the city center. I find that on top of having a strong contribution to suburbanization and reducing welfare inequalities, the public transport network reduced income segregation in the area. Turning to the prospective effects of banning cars in the city center, the model predicts a reduction of the income disparities between Paris and its suburbs, at the cost of a substantial welfare loss.

Suggested Citation

  • Morgan Ubeda, 2020. "Local Amenities, Commuting Costs and Income Disparities Within Cities," Working Papers halshs-03082448, HAL.
    • Handle: RePEc:hal:wpaper:halshs-03082448
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03082448v2
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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