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Spatial Segregation and Urban Structure

  • Pierre M. Picard

    ()

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

  • Pascal Mossay

    ()

    (Department of Economics, University of Reading and CORE)

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.

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File URL: http://wwwfr.uni.lu/content/download/60286/707660/file/2013-03%20-%20Spatial%20Segregation%20and%20Urban%20Structure.pdf
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Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 13-03.

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Date of creation: 2013
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Handle: RePEc:luc:wpaper:13-03
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  1. Benabou, Roland, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 619-52, August.
  2. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  3. de Marti, Joan & Zenou, Yves, 2011. "Identity and Social Distance in Friendship Formation," Research Papers in Economics 2011:13, Stockholm University, Department of Economics.
  4. Richard Arnott & Alex Anas & Kenneth Small, 1997. "Urban Spatial Structure," Boston College Working Papers in Economics 388., Boston College Department of Economics.
  5. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
  6. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
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