A Pecuniary Reason for Income Mixing
AbstractEmpirical studies have found a high degree of income mixing in American neighborhoods. We give a new explanation of this phenomenon that is based on consumer search. A low price for a given good benefits high valuation buyers more than low valuation buyers. But with search, the probability of obtaining a low price is increasing in the proportion of low valuation buyers. This gives high valuation buyers an incentive to live near low valuation buyers. With many goods, a buyer has an incentive to live near neighbors whose valuations are uncorrelated with hers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Urban Economics.
Volume (Year): 44 (1998)
Issue (Month): 1 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622905
Other versions of this item:
- Frankel, D.M., 1995. "A Pecuniary Reason for Income Mixing," Papers, Tel Aviv 20-95, Tel Aviv.
- Frankel, David M., 1998. "A Pecuniary Reason for Income Mixing," Staff General Research Papers, Iowa State University, Department of Economics 11925, Iowa State University, Department of Economics.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Epple, Dennis & Romer, Thomas, 1991. "Mobility and Redistribution," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(4), pages 828-58, August.
- Joseph E. Stiglitz, 1981. "Public Goods in Open Economies with Heterogeneous Individuals," NBER Working Papers 0802, National Bureau of Economic Research, Inc.
- de Bartolome, Charles A M, 1990. "Equilibrium and Inefficiency in a Community Model with Peer Group Effects," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 98(1), pages 110-33, February.
- Berglas, Eitan, 1976. "Distribution of tastes and skills and the provision of local public goods," Journal of Public Economics, Elsevier, Elsevier, vol. 6(4), pages 409-423, November.
- Reynolds Farley, 1977. "Residential segregation in urbanized areas of the United States in 1970: An analysis of social class and racial differences," Demography, Springer, Springer, vol. 14(4), pages 497-518, November.
- Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 63(2), pages 237-64, April.
- Benabou, Roland, 1993.
"Workings of a City: Location, Education, and Production,"
The Quarterly Journal of Economics, MIT Press,
MIT Press, vol. 108(3), pages 619-52, August.
- Roland Benabou, 1991. "Workings of a City: Location, Education, and Production," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0113, National Bureau of Economic Research, Inc.
- Durlauf, S.N., 1993.
"Spillovers, Stratification, and Inequality,"
Working papers, Wisconsin Madison - Social Systems
9327, Wisconsin Madison - Social Systems.
- Miyao, Takahiro, 1978. "Dynamic Instability of a Mixed City in the Presence of Neighborhood Externalities," American Economic Review, American Economic Association, American Economic Association, vol. 68(3), pages 454-63, June.
- Goldman, Arieh & Johansson, J K, 1978. " Determinants of Search for Lower Prices: An Empirical Assessment of the Economics of Information Theory," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 5(3), pages 176-86, December.
- Marvel, Howard P, 1976. "The Economics of Information and Retail Gasoline Price Behavior: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 84(5), pages 1033-60, October.
- Peter Diamond, 1985.
"Consumer Differences and Prices in a Search Model,"
Working papers, Massachusetts Institute of Technology (MIT), Department of Economics
404, Massachusetts Institute of Technology (MIT), Department of Economics.
- Ellickson, Bryan, 1971. "Jurisdictional Fragmentation and Residential Choice," American Economic Review, American Economic Association, American Economic Association, vol. 61(2), pages 334-39, May.
- Bond, Eric W. & Coulson, N. Edward, 1989. "Externalities, filtering, and neighborhood change," Journal of Urban Economics, Elsevier, Elsevier, vol. 26(2), pages 231-249, September.
- Benabou, Roland, 1994. "Human capital, inequality, and growth: A local perspective," European Economic Review, Elsevier, Elsevier, vol. 38(3-4), pages 817-826, April.
- Epple, Dennis & Filimon, Radu & Romer, Thomas, 1984. "Equilibrium among local jurisdictions: toward an integrated treatment of voting and residential choice," Journal of Public Economics, Elsevier, Elsevier, vol. 24(3), pages 281-308, August.
- Pratt, John W & Wise, David A & Zeckhauser, Richard, 1979. "Price Differences in Almost Competitive Markets," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 93(2), pages 189-211, May.
- Carlson, John A & Gieseke, Robert J, 1983. " Price Search in a Product Market," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 9(4), pages 357-65, March.
- McKinnish, Terra & White, T. Kirk, 2011.
"Who moves to mixed-income neighborhoods?,"
Regional Science and Urban Economics, Elsevier,
Elsevier, vol. 41(3), pages 187-195, May.
- Terra McKinnish & T. Kirk White, 2010. "Who Moves to Mixed-Income Neighborhoods?," Working Papers, Center for Economic Studies, U.S. Census Bureau 10-18, Center for Economic Studies, U.S. Census Bureau.
- Aaronson, Daniel, 2001. "Neighborhood Dynamics," Journal of Urban Economics, Elsevier, Elsevier, vol. 49(1), pages 1-31, January.
- Glenn Ellison, 2004.
"A Model of Add-on Pricing,"
Economics Working Papers, Institute for Advanced Study, School of Social Science
0049, Institute for Advanced Study, School of Social Science.
- Krupka, Douglas J., 2008. "The Stability of Mixed Income Neighborhoods in America," IZA Discussion Papers 3370, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.