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Gentrification and Retail Churn: Theory and Evidence / Edward L. Glaeser, Michael Luca, Erica Moszkowski.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Glaeser, Edward L.
Contributor:
National Bureau of Economic Research.
Luca, Michael.
Moszkowski, Erica.
Series:
Working Paper Series (National Bureau of Economic Research) no. w28271.
NBER working paper series no. w28271
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2020.
Summary:
How does gentrification transform neighborhood retail amenities? This paper presents a model in which gentrification harms incumbent resident by increasing rental costs and by eliminating distinctive local stores. While rising rents can be offset with targeted transfers, the destruction of neighborhood character can - in principle - reduce overall social surplus. Empirically we find that gentrifying neighborhoods experience faster growth in both the number of retail establishments and business closure rates than their non-gentrifying counterparts. However, we see little evidence that gentrification is associated with changes in retail mix or prices - suggesting limited welfare losses.
Notes:
Print version record
December 2020.

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