AEA Papers and Proceedings 111, pp.532-537, 2021

Clare Balboni, Gharad Bryan, Melanie Morton and Bilal Siddiqi

Published 1 May 2021

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When policymakers invest in urban infrastructure, there are concerns that poor residents living near the infrastructure will be displaced. This paper investigates mechanisms that may lead to such infrastructure-induced gentrification using a general equilibrium urban commuting model. Our goal is to elucidate the channels through which infrastructure-induced gentrification occurs and understand how policy choices mitigate or accentuate gentrification.