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Spatial segregation and urban structure

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  • MOSSAY, Pascal

    ()
    (Department of Economics, University of Reading, UK; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • PICARD, Pierre M.

    ()
    (CREA, Université du Luxembourg; Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

Abstract

In this paper, we study social interactions between two populations of individuals living in a city. Agents consume land and benefit from intra- and inter-group social interactions. We show that in equilibrium segregation arises: populations get separated in distinct spatial neighborhoods. Two- and three-district urban structures are characterized. For high population ratios or strong inter-group interactions, only a three-district city exists. In other cases, multiplicity of equilibria arises. Moreover, for sufficiently low population ratios or very weak inter-group interactions, all individuals agree on which spatial equilibrium is best.

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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 2013019.

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Date of creation: 17 May 2013
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Handle: RePEc:cor:louvco:2013019

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Keywords: social interaction; segregation; multiple centers; urban districts;

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  1. de Marti, Joan & Zenou, Yves, 2011. "Identity and Social Distance in Friendship Formation," Research Papers in Economics 2011:13, Stockholm University, Department of Economics.
  2. Roland Benabou, 1991. "Workings of a City: Location, Education, and Production," NBER Technical Working Papers 0113, National Bureau of Economic Research, Inc.
  3. Richard Arnott & Alex Anas & Kenneth Small, 1997. "Urban Spatial Structure," Boston College Working Papers in Economics 388., Boston College Department of Economics.
  4. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
  5. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
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Cited by:
  1. Vincent Boitier, 2014. "Unemployment Dispersion and City Configurations: Beyond the Bid Rent Theory," Working Papers hal-00999559, HAL.
  2. Sato, Yasuhiro & Zenou, Yves, 2014. "How Urbanization Affects Employment and Social Interactions," IZA Discussion Papers 7914, Institute for the Study of Labor (IZA).

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