Publications
Publications
- Forthcoming
- Regional Science and Urban Economics
Gentrification and Retail Churn: Theory and Evidence
By: Edward L. Glaeser, Michael Luca and Erica Moszkowski
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).