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The Effect of a Change in Wages on Welfare in a Two-Class Monocentric City

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  • Youngsun Kwon

Abstract

This paper performs a comparative static analysis to derive the effect of a change in the wages of the rich living in the suburban area of a city on the welfare of the poor living in the central area of the city. It assumes that commuting cost is a function of distance and wages. A sufficient condition for an increase in the wages of the rich to harm the welfare of the poor is that the time cost of commuting is greater than the operating cost of commuting. Copyright Blackwell Publishing, Inc. 2003

Suggested Citation

  • Youngsun Kwon, 2003. "The Effect of a Change in Wages on Welfare in a Two-Class Monocentric City," Journal of Regional Science, Wiley Blackwell, vol. 43(1), pages 63-72.
  • Handle: RePEc:bla:jregsc:v:43:y:2003:i:1:p:63-72
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    Cited by:

    1. Li, Zhi-Chun & Chen, Ya-Juan & Wang, Ya-Dong & Lam, William H.K. & Wong, S.C., 2013. "Optimal density of radial major roads in a two-dimensional monocentric city with endogenous residential distribution and housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 927-937.
    2. repec:eee:transb:v:111:y:2018:i:c:p:244-265 is not listed on IDEAS
    3. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Choi, Keechoo, 2012. "Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 710-728.

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