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

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  • Tivadar, Mihai

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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  • Tivadar, Mihai, 2010. "Is it better to live in a US or a European city?," Regional Science and Urban Economics, Elsevier, vol. 40(4), pages 221-227, July.
    • Handle: RePEc:eee:regeco:v:40:y:2010:i:4:p:221-227
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    1. 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.
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    Cited by:

    1. Wrede, Matthias, 2012. "Wages, rents, unemployment, and the quality of life," FAU Discussion Papers in Economics 01/2012 [rev.], Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    2. Tivadar, Mihai & Jayet, Hubert, 2019. "Endogenous generation of amenities and the dynamics of city structure," Regional Science and Urban Economics, Elsevier, vol. 74(C), pages 49-56.
    3. Matthias Wrede, 2015. "Wages, Rents, Unemployment, And The Quality Of Life: A Consistent Theory‐Based Measure," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 609-625, September.
    4. Yogi Vidyattama & Robert Tanton & Binod Nepal, 2013. "The Effect of Transport Costs on Housing-related Financial Stress in Australia," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1779-1795, July.
    5. Waights, Sevrin, 2018. "Does gentrification displace poor households? An ‘identification-via-interaction’ approach," LSE Research Online Documents on Economics 88691, London School of Economics and Political Science, LSE Library.

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