@article{83f12c7bdf714523b77ef7517b40abaa,
title = "A spatial theory of urban segregation",
abstract = "We provide a competitive equilibrium theory of urban segregation in a linear city. Households demand consumption and housing along the city and are exposed to neighborhood externalities. We show that equilibria that are robust to small coalitional deviations are segregated. Our results explain urban segregation in a standard neoclassical framework and shed new light on the difficulties faced by authorities to integrate cities.",
keywords = "homophily, residential segregation, spatial externalities",
author = "Carniglia, {Gian Luca} and Escobar, {Juan F.}",
note = "Funding Information: We thank Matthew Osborne, Romans Pancs, David Pearce, and Raimundo Undurraga for their helpful comments. We are also deeply indebted to all the anonymous referees and editors that carefully reviewed our paper and provided thoughtful comments. Gian Luca acknowledges financial support from Fondecyt de Iniciaci{\'o}n N 11230380, ANID, Ministerio Ciencia, Tecnolog{\'i}a, Conocimiento e Innovaci{\'o}n de Chile. Escobar acknowledges financial support from the Institute for Research in Market Imperfections and Public Policy, MIPP, ICM IS130002, Ministerio de Econom{\'i}a. Publisher Copyright: {\textcopyright} 2023 Wiley Periodicals LLC.",
year = "2023",
month = aug,
doi = "10.1111/jpet.12641",
language = "English",
volume = "25",
pages = "653--678",
journal = "Journal of Public Economic Theory",
issn = "1097-3923",
publisher = "Wiley-Blackwell Publishing Ltd",
number = "4",
}