Could Gentrification Stop the Poor from Benefiting from Urban Improvements?

When policymakers invest in urban infrastructure, there are concerns that poor residents living near the infrastructure will be displaced. This paper investigates mechanisms that may lead to such infrastructure-induced gentrification using a general equilibrium urban commuting model. Our goal is to elucidate the channels through which infrastructure-induced gentrification occurs and understand how policy choices mitigate or accentuate gentrification.