2010/12/12 by Laëtitia Gauvin, Gauvin, Laetitia, Annick Vignes +3 · 1 citation
Economics, Econometrics and Finance · Social Sciences · #Housing Market and Economics #Urban, Neighborhood, and Segregation Studies #Regional Economics and Spatial Analysis
paper · pdf · doi:10.48550/arxiv.1012.2606
Addressing issues of social diversity, we introduce a model of housing\ntransactions between agents who are heterogeneous in their willingness to pay.\nA key assumption is that agents' preferences for a location depend on both an\nintrinsic attractiveness and on the social characteristics of the neighborhood.\nThe stationary space distribution of income is analytically and numerically\ncharacterized. The main results are that socio-spatial segregation occurs if --\nand only if -- the social influence is strong enough, but even so, some social\ndiversity is preserved at most locations. Comparison with data on the Paris\nhousing market shows that the results reproduce general trends of price\ndistribution and spatial income segregation.\n