IDEAS home Printed from https://ideas.repec.org/a/spr/empeco/v47y2014i3p1129-1146.html
   My bibliography  Save this article

Income, distance and amenities. An empirical analysis

Author

Listed:
  • Rafa Madariaga

    ()

  • Joan Martori

    ()

  • Ramon Oller

    ()

Abstract

This paper analyses the income distribution of households in Barcelona metropolitan area. For this purpose we use the monocentric model. As the basic model does not have direct implications for this distribution, we survey the extensions of the model that have been used in empirical literature. One of the most promising ways is to introduce externalities in the decision process; they can result directly from exogenous amenities (given traits of urban area) or be created by other agents’ decisions. We first test the simple model relating income to distance. Then we introduce and test the model with exogenous amenities; recreational areas, transportation systems, health, educational and cultural infrastructure. In the third stage we test the model with spatial effects. We present evidence that any model with spatial effects improves significantly the empirical results. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Rafa Madariaga & Joan Martori & Ramon Oller, 2014. "Income, distance and amenities. An empirical analysis," Empirical Economics, Springer, vol. 47(3), pages 1129-1146, November.
  • Handle: RePEc:spr:empeco:v:47:y:2014:i:3:p:1129-1146
    DOI: 10.1007/s00181-013-0772-8
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00181-013-0772-8
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    2. de Bartolome, Charles A.M. & Ross, Stephen L., 2007. "Community income distributions in a metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(3), pages 496-518, May.
    3. Daniel P. McMillen, 2010. "Issues In Spatial Data Analysis," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 119-141.
    4. Daniel P. McMillen & Christian L. Redfearn, 2010. "Estimation And Hypothesis Testing For Nonparametric Hedonic House Price Functions," Journal of Regional Science, Wiley Blackwell, vol. 50(3), pages 712-733.
    5. Ng, Chen Feng, 2008. "Commuting distances in a household location choice model with amenities," Journal of Urban Economics, Elsevier, vol. 63(1), pages 116-129, January.
    6. Hans R. A. Koster & Jos N. van Ommeren & Piet Rietveld, 2016. "Historic amenities, income and sorting of households," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 203-236.
    7. Florax, Raymond J. G. M. & Folmer, Hendrik & Rey, Sergio J., 2003. "Specification searches in spatial econometrics: the relevance of Hendry's methodology," Regional Science and Urban Economics, Elsevier, vol. 33(5), pages 557-579, September.
    8. Eva Gutierrez Puigarnau & Jos N. van Ommeren, 2013. "Do rich households live farther away from their workplaces?," CPB Discussion Paper 244, CPB Netherlands Bureau for Economic Policy Analysis.
    9. K Zielinski, 1979. "Experimental analysis of eleven models of urban population density," Environment and Planning A, Pion Ltd, London, vol. 11(6), pages 629-641, June.
    10. Brueckner, Jan K. & Thisse, Jacques-Francois & Zenou, Yves, 1999. "Why is central Paris rich and downtown Detroit poor?: An amenity-based theory," European Economic Review, Elsevier, vol. 43(1), pages 91-107, January.
    11. Brueckner, Jan K., 2011. "Lectures on Urban Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016362, January.
    12. de Bartolome, Charles A. M. & Ross, Stephen L., 2003. "Equilibria with local governments and commuting: income sorting vs income mixing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 1-20, July.
    13. McDonald, John F., 2009. "Calibration of a monocentric city model with mixed land use and congestion," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 90-96, January.
    14. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
    15. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    16. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    17. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
    18. K Zielinski, 1979. "Experimental Analysis of Eleven Models of Urban Population Density," Environment and Planning A, , vol. 11(6), pages 629-641, June.
    19. Anselin, Luc, 2002. "Under the hood Issues in the specification and interpretation of spatial regression models," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
    20. MacKinnon, James G. & White, Halbert, 1985. "Some heteroskedasticity-consistent covariance matrix estimators with improved finite sample properties," Journal of Econometrics, Elsevier, vol. 29(3), pages 305-325, September.
    21. Mur, Jesús & Angulo, Ana, 2009. "Model selection strategies in a spatial setting: Some additional results," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 200-213, March.
    22. McDonald, John F. & Bowman, H. Woods, 1976. "Some tests of alternative urban population density functions," Journal of Urban Economics, Elsevier, vol. 3(3), pages 242-252, July.
    23. LeRoy, Stephen F. & Sonstelie, Jon, 1983. "Paradise lost and regained: Transportation innovation, income, and residential location," Journal of Urban Economics, Elsevier, vol. 13(1), pages 67-89, January.
    24. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    25. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444.
    26. Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
    27. J. Barkley Rosser, 2009. "Introduction," Chapters,in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
    28. Edwin S. Mills & Luan Sende Lubuele, 1997. "Inner Cities," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 727-756, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joan Carles Martori & Rafa Madariaga & Ramon Oller, 2016. "Real estate bubble and urban population density: six Spanish metropolitan areas 2001–2011," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 369-392, March.

    More about this item

    Keywords

    Monocentric model; Income-distance relationship; Spatial effects; Amenities; C52; R14; R21; R22;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • 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
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:47:y:2014:i:3:p:1129-1146. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.