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Why is central Paris rich and downtown Detroit poor? An amenity-based theory

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  • BRUECKNER, Jan K.
  • THISSE, Jacques-François
  • ZENOU, Yves

Abstract

This paper presents an amenity-based theory of location by income. The theory shows that the relative location of different income groups depends on the spatial pattern of amenities in a city. When the center has a strong amenity advantage over the suburbs, the rich are likely to live at central locations. When the center's amenity advantage is weak or negative, the rich are likely to live in the suburbs. The virtue of the theory is that it ties location by income to a city'. idiosyncratic characteristics. It thus predicts a multiplicity of location patterns across cities, consistent with real-world observation
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Suggested Citation

  • BRUECKNER, Jan K. & THISSE, Jacques-François & ZENOU, Yves, 1999. "Why is central Paris rich and downtown Detroit poor? An amenity-based theory," LIDAM Reprints CORE 1370, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:1370
    Note: In : European Economic Review, 43, 91-107, 1999
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    1. Nicole Tabard, 1993. "Des quartiers pauvres aux banlieues aisées : une représentation sociale du territoire," Économie et Statistique, Programme National Persée, vol. 270(1), pages 5-22.
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    4. Gin, Alan & Sonstelie, Jon, 1992. "The streetcar and residential location in nineteenth century Philadelphia," Journal of Urban Economics, Elsevier, vol. 32(1), pages 92-107, July.
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