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So close yet so unequal: Reconsidering spatial inequality in U.S. cities

Author

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  • Francesco Andreoli

    (Department of Economics (University of Verona))

  • Eugenio Peluso

    (Department of Economics (University of Verona))

Abstract

We present a new methodological framework to capture the implications of spatial proximity on income inequality. We propose to measure inequality within and between individual neighborhoods through Gini-type spatial inequality indices. We investigate the statistical properties of these indices and we establish connections with geostatistics. We demonstrate that the basic income-flat tax scheme is the unique redistributive scheme capable of reducing income inequality without increasing spatial inequality, regardless of the spatial distribution of incomes. We use a rich income database taken from the census to establish new stylized facts about spatial inequality in major U.S. cities during the last 35 years. We also show that the geography of income inequality can be related to the impact of neighborhoods on income and health prospects of Americans.

Suggested Citation

  • Francesco Andreoli & Eugenio Peluso, 2016. "So close yet so unequal: Reconsidering spatial inequality in U.S. cities," Working Papers 21/2016, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:21/2016
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    More about this item

    Keywords

    Gini; individual neighborhood; between inequality; variogram; geostatistics; flat tax; census; ACS; urban; U.S.; causal neighborhood effects; life expectancy;
    All these keywords.

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics

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