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How Segregated is Urban Consumption?

Author

Listed:
  • Donald R. Davis
  • Jonathan I. Dingel
  • Joan Monras
  • Eduardo Morales

Abstract

We provide measures of ethnic and racial segregation in urban consumption. Using Yelp reviews, we estimate how spatial and social frictions influence restaurant visits within New York City. Transit time plays a first-order role in consumption choices, so consumption segregation partly reflects residential segregation. Social frictions also have a large impact on restaurant choices: individuals are less likely to visit venues in neighborhoods demographically different from their own. While spatial and social frictions jointly produce significant levels of consumption segregation, we find that restaurant consumption in New York City is only about half as segregated as residences. Consumption segregation owes more to social than spatial frictions.

Suggested Citation

  • Donald R. Davis & Jonathan I. Dingel & Joan Monras & Eduardo Morales, 2017. "How Segregated is Urban Consumption?," NBER Working Papers 23822, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23822
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    References listed on IDEAS

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    1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    2. Donald W. K. Andrews & Gustavo Soares, 2010. "Inference for Parameters Defined by Moment Inequalities Using Generalized Moment Selection," Econometrica, Econometric Society, vol. 78(1), pages 119-157, January.
    3. repec:hrv:faseco:34708519 is not listed on IDEAS
    4. Nathan Schiff, 2015. "Cities and product variety: evidence from restaurants," Journal of Economic Geography, Oxford University Press, vol. 15(6), pages 1085-1123.
    5. Gloria Sheu & Andres Zahler & Eduardo Morales, 2016. "Extended Gravity," 2016 Meeting Papers 1565, Society for Economic Dynamics.
    6. Alon Eizenberg, 2014. "Upstream Innovation and Product Variety in the U.S. Home PC Market," Review of Economic Studies, Oxford University Press, vol. 81(3), pages 1003-1045.
    7. Mayer, Adalbert & Puller, Steven L., 2008. "The old boy (and girl) network: Social network formation on university campuses," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 329-347, February.
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    Citations

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    Cited by:

    1. Kentaro Nakajima & Kensuke Teshima, 2018. "Identifying Neighborhood Effects among Firms: Evidence from Location Lotteries of the Tokyo Tsukiji Fish Market," 2018 Meeting Papers 575, Society for Economic Dynamics.
    2. Sumit Agarwal & J. Bradford Jensen & Ferdinando Monte, 2017. "The Geography of Consumption," NBER Working Papers 23616, National Bureau of Economic Research, Inc.
    3. Ingrid Gould Ellen & Stephen L. Ross, 2018. "Race and the City," Working papers 2018-03, University of Connecticut, Department of Economics.
    4. Ingrid Gould Ellen & Stephen L. Ross, 2018. "Race and the City," Working Papers 2018-022, Human Capital and Economic Opportunity Working Group.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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