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Latent Tastes, Incomplete Stratification, and the Plausibility of Vertical Sorting Models

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  • Jacob Fishman

    (Arizona State University)

  • V. Kerry Smith

    (Arizona State University)

Abstract

This paper uses the 2011 Phoenix Area Social Survey to evaluate the plausibility of the assumptions made with pure characteristics sorting models to rationalize incomplete stratification of households across local communities by income. The analysis with the New Ecological Paradigm, a well-recognized index of environmental attitudes, confirms the correlations in equilibrium outcomes implied by these models. As a result, it provides the first empirical support for the role of differences in the tastes for public goods as one explanation that provides the rationale for the commonly observed sorting outcomes.

Suggested Citation

  • Jacob Fishman & V. Kerry Smith, 2017. "Latent Tastes, Incomplete Stratification, and the Plausibility of Vertical Sorting Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(2), pages 339-361, February.
    • Handle: RePEc:kap:enreec:v:66:y:2017:i:2:d:10.1007_s10640-015-9952-7
    DOI: 10.1007/s10640-015-9952-7
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    References listed on IDEAS

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    1. Zhaohua Zhang & Derrick Robinson & Diane Hite, 2018. "Racial Residential Segregation: Measuring Location Choice Attributes of Environmental Quality and Self-Segregation," Sustainability, MDPI, vol. 10(4), pages 1-20, April.

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    More about this item

    Keywords

    Equilibrium sorting models; Local public goods; New Ecological Paradigm;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H4 - Public Economics - - Publicly Provided Goods
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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