Within-City Variation in Urban Decline: The Case of Detroit

12 Pages Posted: 2 Feb 2012

See all articles by Veronica Guerrieri

Veronica Guerrieri

University of Chicago - Booth School of Business

Daniel A. Hartley

Federal Reserve Bank of Chicago

Erik Hurst

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

Date Written: February 1, 2012

Abstract

When a city experiences a decline in income or population, do all neighborhoods within the city decline equally? Or do some neighborhoods decline more than others? What are the characteristics of the neighborhoods that decline the most? We answer these questions by looking at what happened to neighborhoods within Detroit as the city experienced a sharp decline in income and population from the 1980s to the late 2000s. We find patterns of changes in income and population that are consistent with the model and empirical patterns of gentrification presented in Guerrieri, Hartley, and Hurst (2011), only playing out in reverse.

Keywords: urban decline, income dynamics, Detroit, externalities

JEL Classification: R21, R23, I32

Suggested Citation

Guerrieri, Veronica and Hartley, Daniel A. and Hurst, Erik, Within-City Variation in Urban Decline: The Case of Detroit (February 1, 2012). FRB of Cleveland Working Paper No. 12-05. Available at SSRN: https://ssrn.com/abstract=1997368

Veronica Guerrieri

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Daniel A. Hartley (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

HOME PAGE: http://www.danielaaronhartley.com

Erik Hurst

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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