Rethinking Detroit

• 成果类型: Article
• 署名作者: Owens, Raymond, III; Rossi-Hansberg, Esteban; Sarte, Pierre-Daniel
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond; Princeton University; Princeton University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20180651
• 发表日期: 2020
• 页码: 258-305
• 关键词: urban decline; density

摘要

This paper studies the urban structure of Detroit-one that is clearly not optimal for its size-which features a business district immediately surrounded by largely vacant neighborhoods. A model is presented where residential externalities lead to multiple equilibria at the neighborhood level. Specifically, neighborhood development requires the coordination of developers and residents, without which it may remain vacant even with sound fundamentals. Given this mechanism, existing strategic visions to revitalize Detroit are evaluated within a quantitative spatial model that can rationalize Detroit's current allocations. Alternative plans that rely on development guarantees are also considered and shown to yield better outcomes.