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Amenities and the Social Structure of Cities

Author

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  • Carl Gaigne

    () (Institut National de la Recherche Agronomique (INRA) - CESAER)

  • Hans R.A. Koster

    () (VU University Amsterdam - Faculty of Economics and Business Administration)

  • Fabien Moizeau

    () (Universite Paris I Pantheon-Sorbonne - Equipe Universitaire de Recherche en Economie)

  • Jacques-Francois Thisse

    () (National Research University Higher School of Economics)

Abstract

We develop a new model of a "featureful" city in which locations are differentiated by two attributes, that is, the distance to employment centers and the accessibility to given amenities, and we show how heterogeneous households in income are sorted out across the urban space. Under Stone-Geary preferences, the spatial income distribution is governed by a location-quality index which reffects the interaction between the amenity and commuting cost functions. The residential equilibrium typically involves the spatial separation of households sharing similar incomes. Using data on Dutch cities, we show that there is a causal relationship between the amenity level and consumer income, suggesting that richer households sort themselves into high amenity locations. We do not find strong evidence that employment accessibility leads to income segregation, suggesting that the standard monocentric city model without amenities is a poor predictor of the social structure of cities.

Suggested Citation

  • Carl Gaigne & Hans R.A. Koster & Fabien Moizeau & Jacques-Francois Thisse, 2017. "Amenities and the Social Structure of Cities," HSE Working papers WP BRP 162/EC/2017, National Research University Higher School of Economics.
  • Handle: RePEc:hig:wpaper:162/ec/2017
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    Cited by:

    1. Garcia-López, Miquel-Àngel & Pasidis, Ilias & Viladecans-Marsal, Elisabet, 2018. "Amphitheaters, cathedrals and operas: The role of historic amenities on suburbanization," CEPR Discussion Papers 13129, C.E.P.R. Discussion Papers.
    2. Hans R. A. Koster & Jos van Ommeren, 2019. "Place-Based Policies and the Housing Market," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 400-414, July.
    3. Malykhin, Nikita & Ushchev, Philip, 2018. "How market interactions shape the city structure," Regional Science and Urban Economics, Elsevier, vol. 71(C), pages 122-136.
    4. Hast, Aira & Syri, Sanna & Lekavičius, Vidas & Galinis, Arvydas, 2018. "District heating in cities as a part of low-carbon energy system," Energy, Elsevier, vol. 152(C), pages 627-639.
    5. Franco, Sofia F. & Macdonald, Jacob L., 2018. "The effects of cultural heritage on residential property values: Evidence from Lisbon, Portugal," Regional Science and Urban Economics, Elsevier, vol. 70(C), pages 35-56.
    6. Gabriel Loumeau, 2021. "Locating Public Facilities: Theory and Micro Evidence from Paris," CESifo Working Paper Series 8908, CESifo.
    7. Moshref-Javadi, Mohammad & Lee, Seokcheon & Winkenbach, Matthias, 2020. "Design and evaluation of a multi-trip delivery model with truck and drones," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    8. Victor Couture & Cecile Gaubert & Jessie Handbury & Erik Hurst, 2019. "Income Growth and the Distributional Effects of Urban Spatial Sorting," NBER Working Papers 26142, National Bureau of Economic Research, Inc.
    9. Tivadar, Mihai & Jayet, Hubert, 2019. "Endogenous generation of amenities and the dynamics of city structure," Regional Science and Urban Economics, Elsevier, vol. 74(C), pages 49-56.

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    More about this item

    Keywords

    cities; social stratication; income; amenities; commuting;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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