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Spatial Segregation and Urban Structure

Author

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  • Pierre M. Picard

    (CREA, Université du Luxembourg and CORE, Universit é Catholique de Louvain)

  • Pascal Mossay

    (Department of Economics, University of Reading and CORE)

Abstract

In this paper, we study social interactions between two populations of individuals living in a city. Agents consume land and benefit from intra- and inter-group social interactions. We show that in equilibrium segregation arises: populations get separated in distinct spatial neighborhoods. Two- and three-district urban structures are characterized. For high population ratios or strong inter-group interactions, only a three-district city exists. In other cases, multiplicity of equilibria arises. Moreover, for sufficiently low population ratios or very weak inter-group interactions, all individuals agree on which spatial equilibrium is best.

Suggested Citation

  • Pierre M. Picard & Pascal Mossay, 2013. "Spatial Segregation and Urban Structure," DEM Discussion Paper Series 13-03, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:13-03
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    File URL: https://hdl.handle.net/10993/12869
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    References listed on IDEAS

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    More about this item

    Keywords

    social interaction; segregation; multiple centers; urban districts;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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