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Is it better to live in a US or a European city?

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  • Tivadar, Mihai
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    Abstract

    We examine equilibria for a city where amenities are generated and valued by a social group, the rich. We considered two types of spatial structures: the American equilibrium (where rich households are located at the periphery) and the European equilibrium (where the rich households are concentrated in the central part of the city), proving that both can exist, and deriving their conditions. We find that the European equilibrium is more restrictive than the American one. The second main result is that, in terms of welfare, the American structure is superior to the European one.

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    Bibliographic Info

    Article provided by Elsevier in its journal Regional Science and Urban Economics.

    Volume (Year): 40 (2010)
    Issue (Month): 4 (July)
    Pages: 221-227

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    Handle: RePEc:eee:regeco:v:40:y:2010:i:4:p:221-227

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    Web page: http://www.elsevier.com/locate/regec

    Related research

    Keywords: Location Income Segregation Amenities;

    References

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    1. Rappaport, Jordan & Kahn, Matthew E. & Glaeser, Edward, 2008. "Why Do The Poor Live In Cities? The Role of Public Transportation," Scholarly Articles 2958224, Harvard University Department of Economics.
    2. Jean Cavailhès & Harris Selod, 2003. "Ségrégation sociale et périurbanisation," INRA Sciences Sociales, INRA Department of Economics.
    3. de Bartolome, Charles A.M. & Ross, Stephen L., 2007. "Community income distributions in a metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(3), pages 496-518, May.
    4. de Bartolome, Charles A. M. & Ross, Stephen L., 2004. "Who's in charge of the central city? The conflict between efficiency and equity in the design of a metropolitan area," Journal of Urban Economics, Elsevier, vol. 56(3), pages 458-483, November.
    5. Wheaton, William C, 1977. "Income and Urban Residence: An Analysis of Consumer Demand for Location," American Economic Review, American Economic Association, vol. 67(4), pages 620-31, September.
    6. Brueckner, J.K. & Thisse, J.-F. & Zenou, Y., 1996. "Why is central Paris rich and downtown Detroit poor ? An amenity-based theory," CORE Discussion Papers 1996065, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    7. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
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    Cited by:
    1. Rémi Lemoy & Charles Raux & Pablo Jensen, 2013. "Polycentric city and multi-worker households: an agent-based microeconomic model," Working Papers hal-00602087, HAL.

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