Optimal Spatial Patterns of Two, Three and Four Segregated Household Groups in a Monocentric City
AbstractUsually, in monocentric city models the spatial patterns of segregated household groups are assumed to be ring-shaped, while early in the 1930ies Hoyt showed that wedge-shaped areas empirically predominate. This contribution presents a monocentric city model with different household groups generating positive externalities within the groups. At first, border length is founded as a criterion of optimality. Secondly, it is shown that mixed patterns of concentric and wedge-shaped areas represent multiple equilibria if more than two groups of households are being considered. The welfare optimal segregated pattern depends on the relative purchasing power of different household groups.
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Bibliographic InfoPaper provided by Universität Potsdam, Wirtschafts- und Sozialwissenschaftliche Fakultät in its series Volkswirtschaftliche Diskussionsbeiträge with number 70.
Date of creation: 2004
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Monocentric city; segregation; spatial pattern; externalities;
Find related papers by JEL classification:
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
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