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  • Forthcoming
  • Article
  • Regional Science and Urban Economics

Gentrification and Retail Churn: Theory and Evidence

By: Edward L. Glaeser, Michael Luca and Erica Moszkowski
  • Format:Print
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Abstract

How does gentrification transform neighborhood retail amenities? This paper presents a model in which gentrification harms incumbent residents 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.

Keywords

Gentrification; Neighborhoods; Impact; Local Range; Transition; Civil Society or Community; Welfare; Economic Growth

Citation

Glaeser, Edward L., Michael Luca, and Erica Moszkowski. "Gentrification and Retail Churn: Theory and Evidence." Regional Science and Urban Economics (forthcoming).

About The Author

Michael Luca

Negotiation, Organizations & Markets
→More Publications

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    Shanty Real Estate: Teaching Note Supplement

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    Black Ownership Matters: Does Revealing Race Increase Demand for Minority-Owned Businesses?

    By: Abhay Aneja, Michael Luca and Oren Reshef
    • January 23, 2023
    • Proceedings of the National Academy of Sciences

    Digital Public Health Interventions at Scale: The Impact of Social Media Advertising on Beliefs and Outcomes Related to COVID Vaccines

    By: Susan Athey, Kristen Grabarz, Michael Luca and Nils Wernerfelt
More from the Authors
  • Shanty Real Estate: Teaching Note Supplement By: Michael Luca
  • Black Ownership Matters: Does Revealing Race Increase Demand for Minority-Owned Businesses? By: Abhay Aneja, Michael Luca and Oren Reshef
  • Digital Public Health Interventions at Scale: The Impact of Social Media Advertising on Beliefs and Outcomes Related to COVID Vaccines By: Susan Athey, Kristen Grabarz, Michael Luca and Nils Wernerfelt
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