TY - CHAP
T1 - Change and Persistence in the Economic Status of Neighborhoods and Cities
AU - Rosenthal, Stuart S.
AU - Ross, Stephen L.
N1 - Publisher Copyright:
© 2015 Elsevier B.V.
Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2015
Y1 - 2015
N2 - This chapter reviews recent literature that considers and explains the tendency for neighborhood and city-level economic status to rise and fall. A central message is that although many locations exhibit extreme persistence in economic status, change in economic status as measured by various indicators of per capita income is common. At the neighborhood level, we begin with a set of stylized facts and then follow with discussion of static and dynamic drivers of neighborhood economic status. This is mirrored at the metropolitan level. Durable but slowly decaying housing, transportation infrastructure, and self-reinforcing spillovers all influence local income dynamics, as do enduring natural advantages, amenities, and government policy. Three recurring themes run throughout the paper: (i) Long sweeps of time are typically necessary to appreciate that change in economic status is common, (ii) history matters, and (iii) a combination of static and dynamic forces ensures that income dynamics can and do differ dramatically across locations but in ways that can be understood.
AB - This chapter reviews recent literature that considers and explains the tendency for neighborhood and city-level economic status to rise and fall. A central message is that although many locations exhibit extreme persistence in economic status, change in economic status as measured by various indicators of per capita income is common. At the neighborhood level, we begin with a set of stylized facts and then follow with discussion of static and dynamic drivers of neighborhood economic status. This is mirrored at the metropolitan level. Durable but slowly decaying housing, transportation infrastructure, and self-reinforcing spillovers all influence local income dynamics, as do enduring natural advantages, amenities, and government policy. Three recurring themes run throughout the paper: (i) Long sweeps of time are typically necessary to appreciate that change in economic status is common, (ii) history matters, and (iii) a combination of static and dynamic forces ensures that income dynamics can and do differ dramatically across locations but in ways that can be understood.
KW - City income dynamics
KW - Cycles
KW - Durable housing
KW - Neighborhood income dynamics
KW - Path dependence
KW - Persistence
KW - Spillovers
KW - Transportation infrastructure
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U2 - 10.1016/B978-0-444-59531-7.00016-8
DO - 10.1016/B978-0-444-59531-7.00016-8
M3 - Chapter
AN - SCOPUS:84929008449
T3 - Handbook of Regional and Urban Economics
SP - 1047
EP - 1120
BT - Handbook of Regional and Urban Economics
PB - Elsevier
ER -