A spatial theory of urban segregation

Gian Luca Carniglia, Juan F. Escobar

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


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.

Original languageEnglish
Pages (from-to)653-678
Number of pages26
JournalJournal of Public Economic Theory
Issue number4
StatePublished - Aug 2023
Externally publishedYes


  • homophily
  • residential segregation
  • spatial externalities


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