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Where in cities do "rich" and "poor" people live? The urban economics model revisited

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  • Rémi Lemoy

    () (University of Luxembourg [Luxembourg], LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

  • Charles Raux

    () (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

  • Pablo Jensen

    () (Phys-ENS - Laboratoire de Physique de l'ENS Lyon - ENS Lyon - École normale supérieure - Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - CNRS - Centre National de la Recherche Scientifique, IXXI - Institut Rhône-Alpin des systèmes complexes - Université Jean Moulin - Lyon III - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique - Inria - Institut National de Recherche en Informatique et en Automatique - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJF - Université Joseph Fourier - Grenoble 1 - ENS Lyon - École normale supérieure - Lyon)

Abstract

We exploit the power of the Alonso-Mills-Muth (AMM) urban economics model and show that various utility functions and plausible conditions offer alternative explanations of households' location by income within a city. These include the existence of a "rich" center and more complex socio-spatial urban forms for instance alternating a rich center, poor suburbs and a rich outer ring, which have not yet been derived from the AMM model to our knowledge. In doing so we combine analytical ideas and illustrations by the means of an agent-based model. The hypothesis of a central or non-central amenity is also studied, leading to different insights on the issue.

Suggested Citation

  • Rémi Lemoy & Charles Raux & Pablo Jensen, 2013. "Where in cities do "rich" and "poor" people live? The urban economics model revisited," Working Papers hal-00805116, HAL.
  • Handle: RePEc:hal:wpaper:hal-00805116
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00805116v3
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    References listed on IDEAS

    as
    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, April.
    2. 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.
    3. Cervero, Robert & Chapple, Karen & Landis, John & Wachs, Martin & Duncan, Michael & Scholl, Patricia Lynn & Blumenberg, Evelyn, 2006. "MAKING DO: How Working Families in Seven U.S. Metropolitan Areas Trade Off Housing Costs and Commuting Times," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt9wf8x6p5, Institute of Transportation Studies, UC Berkeley.
    4. 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.
    5. Rémi Lemoy & Charles Raux & Pablo Jensen, 2016. "Exploring the polycentric city with multi-worker households: an agent-based microeconomic model," Post-Print hal-00602087, HAL.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    urban economics; location choice; income; amenity; agent-based model;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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