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Why is central Paris rich and downtown Detroit poor ? An amenity-based theory

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  • BRUECKNER, J.K.

    (University of Illinouis at Urbana-Champaign)

  • THISSE, J.-F.

    ()
    (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • ZENOU, Y.

    (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

Abstract

This paper presents an amenity-based theory of location by income. The theory shows that the relative location of different income groups depends on the spatial pattern of amenities in a city. When the center has a strong amenity advantage over the suburbs, the rich are likely to live at central locations. When the center's amenity advantage is weak or negative, the rich are likely to live in the suburbs. The virtue of the theory is that it ties location by income to a city'. idiosyncratic characteristics. It thus predicts a multiplicity of location patterns across cities, consistent with real-world observation

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1996065.

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Date of creation: 01 Dec 1996
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Handle: RePEc:cor:louvco:1996065

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  1. Ingram, Gregory K. & Carroll, Alan, 1981. "The spatial structure of Latin American cities," Journal of Urban Economics, Elsevier, vol. 9(2), pages 257-273, March.
  2. Glaeser, E.L. & Ades, A.F., 1993. "Trade and Circuses: Explaining Urban Giants," Harvard Institute of Economic Research Working Papers 1646, Harvard - Institute of Economic Research.
  3. Gin, Alan & Sonstelie, Jon, 1992. "The streetcar and residential location in nineteenth century Philadelphia," Journal of Urban Economics, Elsevier, vol. 32(1), pages 92-107, July.
  4. Nicole Tabard, 1993. "Des quartiers pauvres aux banlieues aisées : une représentation sociale du territoire," Économie et Statistique, Programme National Persée, vol. 270(1), pages 5-22.
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