Research
Job Market Paper
Within-city Income Inequality, Residential Sorting, and House Prices (link)
This paper studies the effects of rising income inequality on residential patterns and house prices within a city. I develop a monocentric city model with continuous income distribution and endogenous housing supply. The household simultaneously chooses a location and housing quality within the city. The key feature of the model is that the net cost of living further from the city center consists of a common component, and a component that is increasing with income. The model can generate imperfect sorting equilibria where households at both ends of the income distribution prefer living closer to the city center. Substantial income growth at the top of the distribution leads to changes in equilibrium outcomes that resemble the gentrification phenomenon: high-quality, expensive houses are built near the city center; many of the earlier poor residents move to more affordable non-central locations. The greenbelt causes city-wide increase in housing costs and reduces welfare when the income growth for the rich is substantial, and the welfare loss is most significant for low-income households.
Working Paper
Neighborhood Externalities and Residential Sorting (link)
This paper studies the role of endogenous neighborhood amenities in determining internal city structure, residential sorting, and house prices. The amenity levels across locations in a city depends on the location of high-income households: living closer to the rich provides better access to amenities. Rich households benefit more from the externalities that they generate. The model can generate rich income-location relationships, depending on the interactions between endogenous amenities and commuting costs. When the income elasticity of commuting costs is relatively low, the model can generate polycentric city structure: endogenous amenities and low commuting costs together enable the formation of sub-centers. When the effects of endogenous amenities dominate, higher density near the city center facilitates provision of amenities, making the central locations more attractive for the rich.
Work in Progress
Commute Mode Choice and Residential Sorting
Spatial Sorting of Homeownership
Within-city Income Inequality, Residential Sorting, and House Prices (link)
This paper studies the effects of rising income inequality on residential patterns and house prices within a city. I develop a monocentric city model with continuous income distribution and endogenous housing supply. The household simultaneously chooses a location and housing quality within the city. The key feature of the model is that the net cost of living further from the city center consists of a common component, and a component that is increasing with income. The model can generate imperfect sorting equilibria where households at both ends of the income distribution prefer living closer to the city center. Substantial income growth at the top of the distribution leads to changes in equilibrium outcomes that resemble the gentrification phenomenon: high-quality, expensive houses are built near the city center; many of the earlier poor residents move to more affordable non-central locations. The greenbelt causes city-wide increase in housing costs and reduces welfare when the income growth for the rich is substantial, and the welfare loss is most significant for low-income households.
Working Paper
Neighborhood Externalities and Residential Sorting (link)
This paper studies the role of endogenous neighborhood amenities in determining internal city structure, residential sorting, and house prices. The amenity levels across locations in a city depends on the location of high-income households: living closer to the rich provides better access to amenities. Rich households benefit more from the externalities that they generate. The model can generate rich income-location relationships, depending on the interactions between endogenous amenities and commuting costs. When the income elasticity of commuting costs is relatively low, the model can generate polycentric city structure: endogenous amenities and low commuting costs together enable the formation of sub-centers. When the effects of endogenous amenities dominate, higher density near the city center facilitates provision of amenities, making the central locations more attractive for the rich.
Work in Progress
Commute Mode Choice and Residential Sorting
Spatial Sorting of Homeownership