IDEAS home Printed from https://ideas.repec.org/p/hal/wpaper/hal-00805116.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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 de Lyon - École normale supérieure de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - CNRS - Centre National de la Recherche Scientifique, IXXI - Institut Rhône-Alpin des systèmes complexes - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UJF - Université Joseph Fourier - Grenoble 1 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique)

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.science/hal-00805116v3
    as

    Download full text from publisher

    File URL: https://hal.science/hal-00805116v3/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    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. Wardman, Mark, 0. "A review of British evidence on time and service quality valuations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 107-128, April.
    4. David Caubel, 2005. "Disparités Territoriales Infra-communales (IRIS-2000) selon les niveaux de vie et les positions sociales sur les aires urbaines de Lyon, Bordeaux, Paris, Toulouse, Dijon, Pau, Agen et Villefranche-sur," Post-Print halshs-00095751, HAL.
    5. 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.
    6. 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.
    7. 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.
    8. 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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tabuchi, Takatoshi, 2019. "Do the rich and poor colocate in large cities?," Journal of Urban Economics, Elsevier, vol. 113(C).
    2. Groote, Jesper De & Ommeren, Jos Van & Koster, Hans R.A., 2016. "Car ownership and residential parking subsidies: Evidence from Amsterdam," Economics of Transportation, Elsevier, vol. 6(C), pages 25-37.
    3. Carl Gaigne & Hans R.A. Koster & Fabien Moizeau & Jacques-François Thisse, 2020. "Income Sorting Across Space: The Role of Amenities and Commuting Costs," Working Papers SMART 20-06, INRAE UMR SMART.
    4. Eva Gutiérrez-i-Puigarnau & Ismir Mulalic & Jos N. van Ommeren, 2016. "Do rich households live farther away from their workplaces?," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 177-201.
    5. Tscharaktschiew, Stefan & Hirte, Georg, 2010. "How does the household structure shape the urban economy?," Regional Science and Urban Economics, Elsevier, vol. 40(6), pages 498-516, November.
    6. Zenou, Yves, 2009. "Endogenous job destruction and job matching in cities," Journal of Urban Economics, Elsevier, vol. 65(3), pages 323-336, May.
    7. Yves Zenou, 2011. "Search, wage posting and urban spatial structure," Journal of Economic Geography, Oxford University Press, vol. 11(3), pages 387-416, May.
    8. Waights, Sevrin, 2018. "Does gentrification displace poor households? An ‘identification-via-interaction’ approach," LSE Research Online Documents on Economics 88691, London School of Economics and Political Science, LSE Library.
    9. Yinger, John, 2021. "The price of access to jobs: Bid-function envelopes for commuting costs✰," Journal of Housing Economics, Elsevier, vol. 51(C).
    10. Pangallo, Marco & Nadal, Jean-Pierre & Vignes, Annick, 2019. "Residential income segregation: A behavioral model of the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 15-35.
    11. Behrens, Kristian & Robert-Nicoud, Frédéric, 2008. "Survival of the fittest in cities: agglomeration, selection, and polarisation," LSE Research Online Documents on Economics 28506, London School of Economics and Political Science, LSE Library.
    12. TABUCHI Takatoshi, 2018. "Where Do the Rich Live in a Big City?," Discussion papers 18020, Research Institute of Economy, Trade and Industry (RIETI).
    13. Gaigné, Carl & Koster, Hans R.A. & Moizeau, Fabien & Thisse, Jacques-François, 2022. "Who lives where in the city? Amenities, commuting and income sorting," Journal of Urban Economics, Elsevier, vol. 128(C).
    14. 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.
    15. Viguie, V. & Hallegatte, S., 2014. "Urban infrastructure investment and rent-capture potentials," Policy Research Working Paper Series 7067, The World Bank.
    16. David Cuberes & Jennifer Roberts, 2015. "Household location and income: a spatial analysis for British cities," Working Papers 2015022, The University of Sheffield, Department of Economics.
    17. Abe, Yukiko, 2011. "Family labor supply, commuting time, and residential decisions: The case of the Tokyo Metropolitan Area," Journal of Housing Economics, Elsevier, vol. 20(1), pages 49-63, March.
    18. Rafa Madariaga & Joan Martori & Ramon Oller, 2014. "Income, distance and amenities. An empirical analysis," Empirical Economics, Springer, vol. 47(3), pages 1129-1146, November.
    19. Rhiannon Jerch & Panle Jia Barwick & Shanjun Li & Jing Wu, 2020. "Road Rationing Policies and Housing Markets," DETU Working Papers 2004, Department of Economics, Temple University.
    20. Avner,Paolo & Mehndiratta,Shomik Raj & Viguie,Vincent & Hallegatte,Stephane & Avner,Paolo & Mehndiratta,Shomik Raj & Viguie,Vincent & Hallegatte,Stephane, 2017. "Buses, houses or cash ? socio-economic, spatial and environmental consequences of reforming public transport subsidies in Buenos Aires," Policy Research Working Paper Series 8166, The World Bank.

    More about this item

    Keywords

    urban economics; location choice; income; amenity; agent-based model;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hal:wpaper:hal-00805116. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.