Modeling urban housing market dynamics: Can the socio-spatial segregation preserve some social diversity?
Addressing issues of social diversity, we introduce a model of housing transactions between agents who are heterogeneous in their willingness to pay. A key assumption is that agents' preferences for a location depend on both an intrinsic attractiveness and on the social characteristics of the neighborhood. The stationary space distribution of income is analytically and numerically characterized. The main results are that socio-spatial segregation occurs if – and only if – the social influence is strong enough, but even so, some social diversity is preserved at most locations. Comparison with data on the Paris housing market shows that the results reproduce general trends of price distribution and spatial income segregation.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John M. Clapp & Walter Dolde & Dogan Tirtiroglu, 1995. "Imperfect Information and Investor Inferences From Housing Price Dynamics," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 23(3), pages 239-269.
- David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 1997.
"The Rise and Decline of the American Ghetto,"
NBER Working Papers
5881, National Bureau of Economic Research, Inc.
- Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
- David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Christian Ghiglino & Sanjeev Goyal, 2008.
"Keeping up with the neighbours: social interaction in a market economy,"
Economics Discussion Papers
655, University of Essex, Department of Economics.
- Christian Ghiglino & Sanjeev Goyal, 2010. "Keeping Up with the Neighbors: Social Interaction in a Market Economy," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 90-119, 03.
- Berg, Lennart, 2000.
"Prices on the Second-hand Market for Swedish Family Houses – Correlation, Causation and Determinants,"
Working Paper Series
2000:7, Uppsala University, Department of Economics.
- Lennart Berg, 2002. "Prices on the second-hand market for Swedish family houses: correlation, causation and determinants," European Journal of Housing Policy, Taylor and Francis Journals, vol. 2(1), pages 1-24, April.
- Berg, L., 2000. "Prices on the Second-Hand Market for Swedish Family Houses -Correlation, Causation and Determinants," Papers 2000:7, Uppsala - Working Paper Series.
- Yannis M. Ioannides & Jeffrey E. Zabel, 2003.
"Neighbourhood effects and housing demand,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 18(5), pages 563-584.
- Yannis M. Ioannides & Jeffrey E. Zabel, 2000. "Neighborhood Effects and Housing Demand," Discussion Papers Series, Department of Economics, Tufts University 0012, Department of Economics, Tufts University.
- Youngme Seo & Robert A. Simons, 2009. "The Effect of School Quality on Residential Sales Price," Journal of Real Estate Research, American Real Estate Society, vol. 31(3), pages 307-328.
- Oikarinen, Elias, 2005. "The Diffusion of Housing Price Movements from Centre to Surrounding Areas," Discussion Papers 979, The Research Institute of the Finnish Economy.
- Coralio Ballester & Marc Vorsatz, 2014.
"Random Walk-Based Segregation Measures,"
The Review of Economics and Statistics,
MIT Press, vol. 96(3), pages 383-401, July.
- Kirman, Alan & Markose, Sheri & Giansante, Simone & Pin, Paolo, 2007.
"Marginal contribution, reciprocity and equity in segregated groups: Bounded rationality and self-organization in social networks,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 31(6), pages 2085-2107, June.
- Alan Kirman & Sheri Markose & Simone Giasante & Paolo Pin, 2007. "Marginal contribution, reciprocity and equity in segregated groups: Bounded rationality and self-organization in social networks," Economics Discussion Papers 629, University of Essex, Department of Economics.
- Baltagi, Badi H. & Bresson, Georges, 2011.
"Maximum likelihood estimation and Lagrange multiplier tests for panel seemingly unrelated regressions with spatial lag and spatial errors: An application to hedonic housing prices in Paris,"
Journal of Urban Economics,
Elsevier, vol. 69(1), pages 24-42, January.
- Baltagi, Badi H. & Bresson, Georges, 2010. "Maximum Likelihood Estimation and Lagrange Multiplier Tests for Panel Seemingly Unrelated Regressions with Spatial Lag and Spatial Errors: An Application to Hedonic Housing Prices in Paris," IZA Discussion Papers 5227, Institute for the Study of Labor (IZA).
- Fryer, Roland & Echenique, Federico, 2007. "A Measure of Segregation Based on Social Interactions," Scholarly Articles 2958220, Harvard University Department of Economics.
- Holly, Sean & Hashem Pesaran, M. & Yamagata, Takashi, 2011. "The spatial and temporal diffusion of house prices in the UK," Journal of Urban Economics, Elsevier, vol. 69(1), pages 2-23, January.
- Vigdor, Jacob & Glaeser, Edward & Cutler, David, 2008.
"When Are Ghettos Bad? Lessons from Immigrant Segregation In the United States,"
2666726, Harvard University Department of Economics.
- Cutler, David M. & Glaeser, Edward L. & Vigdor, Jacob L., 2008. "When are ghettos bad? Lessons from immigrant segregation in the United States," Journal of Urban Economics, Elsevier, vol. 63(3), pages 759-774, May.
- David M. Cutler & Edward L. Glaeser & Jacob L. Vigdor, 2007. "When Are Ghettos Bad? Lessons from Immigrant Segregation in the United States," NBER Working Papers 13082, National Bureau of Economic Research, Inc.
- Alberto Alesina & Ekaterina Zhuravskaya, 2008.
"Segregation and the Quality of Government in a Cross-Section of Countries,"
w0120, Center for Economic and Financial Research (CEFIR).
- Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
- Alesina, Alberto F & Zhuravskaya, Ekaterina, 2008. "Segregation and the Quality of Government in a Cross-Section of Countries," CEPR Discussion Papers 6943, C.E.P.R. Discussion Papers.
- Alberto Alesina & Ekaterina Zhuravskaya, 2008. "Segregation and the Quality of Government in a Cross-Section of Countries," NBER Working Papers 14316, National Bureau of Economic Research, Inc.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Fagiolo, Giorgio, 2005. "Endogenous neighborhood formation in a local coordination model with negative network externalities," Journal of Economic Dynamics and Control, Elsevier, vol. 29(1-2), pages 297-319, January.
When requesting a correction, please mention this item's handle: RePEc:eee:dyncon:v:37:y:2013:i:7:p:1300-1321. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.