Work

Natural Amenities, Neighborhood Dynamics, and Persistence in the Spatial Distribution of Income

Year: 2017

Type: report

Abstract: We present theory and evidence highlighting the role of natural amenities in neighborhood dynamics, suburbanization, and variation across cities in the persistence of the spatial distribution of income.Our model generates three predictions that we confirm using a novel database of consistent-boundary neighborhoods in U.S. metropolitan areas, 1880-2010, and spatial data for natural features such as coastlines and hills.First, persistent natural amenities anchor neighborhoods to high incomes over time.Second, naturally heterogeneous cities exhibit persistent spatial distributions of income.Third, downtown neighborhoods in coastal cities were less susceptible to the widespread decentralization of income in the mid-20th century and experienced an increase in income more quickly after 1980.

Source: Working paper

DOI: 10.21799/frbp.wp.2017.03

Authors: Sanghoon Lee, Jeffrey Lin

Institutions: University of British Columbia, University of California, Los Angeles, Federal Reserve Bank of Philadelphia

Language: English

Topic: Agglomeration and Urban Systems

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Sustainable cities and communities, Reduced inequalities

Open Access status: bronze

OpenAlex ID: W4297980693

Cites: 55

Cited by: 13

Related to: 10