The role of government in regentrification

Regentrification has been a controversial and often debated topic since it was first observed in the late 1960s. This paper expands the understanding of regentrification through the development of a new hybrid Tiebout-Alonso model that explicitly introduces: (i) public transportation as an alternative mode of commute to automobile and (ii) a detailed modelling of housing and land demand so that the size of housing driven force against that of opposing commuting driven force is in line with the empirical estimates of existing literature. We find that government policies (school district boundary alteration, taxes and subsidies for commuters) have substantial effects on the degree of regentrification and concentration of poverty around central cities.