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Heterogeneous Immigration, Segregation and Trade

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  • Fabien Candau

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

By introducing taste heterogeneity between mobile workers in a New Economic Geography (NEG) model where the housing price is the main driving force behind dispersion of workers we show that residential segregation and agglomeration are not the sole stable equilibria and that dispersion also emerges with trade liberalization. In addition we find that contrary to the Tiebout hypothesis where segregation is efficient, here it is the dispersed and mixed equilibrium which can be improving for all.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Fabien Candau, 2011. "Heterogeneous Immigration, Segregation and Trade," Post-Print hal-01844383, HAL.
    • Handle: RePEc:hal:journl:hal-01844383
    Note: View the original document on HAL open archive server: https://univ-pau.hal.science/hal-01844383
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    References listed on IDEAS

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    1. Rikard Forslid & Gianmarco I.P. Ottaviano, 2003. "An analytically solvable core-periphery model," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 229-240, July.
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    3. Zeng, Dao-Zhi, 2008. "New economic geography with heterogeneous preferences: An explanation of segregation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 306-324, January.
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    6. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    7. Fabien Candau, 2008. "Entrepreneurs' Location Choice And Public Policies: A Survey Of The New Economic Geography," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 909-952, December.
    8. Fabien Candau & Marc Fleurbaey, 2011. "Agglomeration and Welfare with Heterogeneous Preferences," Open Economies Review, Springer, vol. 22(4), pages 685-708, September.
    9. Paul W. Rhode & Koleman S. Strumpf, 2003. "Assessing the Importance of Tiebout Sorting: Local Heterogeneity from 1850 to 1990," American Economic Review, American Economic Association, vol. 93(5), pages 1648-1677, December.
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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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