Leipzig’s urban development has been subject to serious, not to say extreme, changes in terms of shrinkage and growth over the past three decades. These had a strong impact on the housing market, which was first very tight and then (very) relaxed for some time. In recent years it has tightened...

We develop a model where workers both choose their residential location (geographical space) and social interactions (social space). In equilibrium, we show under which condition the majority group resides close to the job center while the minority group lives far away from it. Even though the...

We develop a model where workers both choose their residential location (geographical space) and their social interactions (social space). In equilibrium, we show under which condition some individuals reside close to the job center while others live far away from it. Even though the two...