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S2E6 - Diego Puga's Favorite Urban Economics Papers of 2021

Densely Speaking

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The New Sourcing Approach to the Cost of Living in the US

The new paper is called our poor cities cheap for everyone, non-homotheticity and the cost of living across US cities. When you have homothetic preferences, someone that has a higher income will buy the same combination of goods that someone that has lower income, but just lower amounts. Non-Homothetic preferences arise when as your income grows, the goods that you buy change. It's really about which people buying different things than poor people, not just buying more things thanpoor people.

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