Practice 10 questions on ECON701 - Urban Economics at MIT, LSE, Stanford, UC Berkeley. Free AI-generated quiz on uNotes — track your score, retake anytime.
1Based on the paper's definitions, which condition must be met for a neighborhood to experience 'strong gentrification'?
2According to the indirect utility function presented in the model, $v_{lw}^\tau = B_l^\tau \omega_w^\tau (r_l^\tau)^{-(\beta^\tau + m^\tau)} d_{lw}^{-\eta_\tau}$, what does the parameter $m^\tau$ represent?
3Which of the following mechanisms are identified by the authors as potential channels through which Infrastructure-Induced Gentrification (IIG) affects welfare distribution?
4In the model's 'Pro-rich slum improvement' simulation (e.g., building parking garages), what was the observed effect on poor incumbents living in the slum?
5If the parameter $\rho$ (representing the proportion of the population that redraws their idiosyncratic shock) is equal to 1, how does incumbency welfare compare to average city welfare?
6What is the primary implication of the 'Commuting Gravity' equation $\pi_o^\tau = \frac{(v_o^\tau)^{\theta_\tau}}{\sum_{o'} (v_{o'}^\tau)^{\theta_\tau}}$ in this model?
7In the baseline simulation, why do rich incumbents receive a larger welfare gain (3.4%) than poor incumbents (1.9%) despite facing the same rent increases?
8In the context of the housing market model, what does a parameter value of $\lambda = -0.3$ represent?
9Which findings from the model simulations support the use of general equilibrium models over simple empirical heuristics like population changes?
10When neighborhoods are more 'homogeneous' ex ante (equal baseline amenities in slum and suburb), how does this affect the welfare gain for low-income types across the city following a slum improvement?
