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Income, distance and amenities. An empirical analysis

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  • 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
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    Cited by:

    1. Cuberes, David & Roberts, Jennifer & Sechel, Cristina, 2019. "Household location in English cities," Regional Science and Urban Economics, Elsevier, vol. 75(C), pages 120-135.
    2. 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.
    3. Yang, Xiaozhong & Zhang, Cheng, 2022. "Spatial investments in the real estate industry: Based on the population flow within the city," Journal of Business Research, Elsevier, vol. 140(C), pages 593-603.

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    More about this item

    Keywords

    Monocentric model; Income-distance relationship; Spatial effects; Amenities; C52; R14; R21; R22;
    All these keywords.

    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

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