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Income, distance and spatial effects in the Monocentric model. The Barcelona Metropolitan Area case


  • Rafa Madariaga


  • Joan Carles Martori
  • Ramon Oller


This paper focuses on the income distribution of households in Barcelona Metropolitan Area. For this purpose we use the Monocentric model. As the basic model does not have direct implications for this distribution, we survey the extensions of the model that have been used in empirical literature. One of the most promising ways is to introduce externalities in the decision process; they can result directly from exogenous amenities (natural traits of urban area) or be created directly by other agents' decisions. In this case, a spatial lag model and spatial error model are suited for the empirical purposes. We present evidence that any model with spatial effects improves significantly the econometric results.

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  • Rafa Madariaga & Joan Carles Martori & Ramon Oller, 2011. "Income, distance and spatial effects in the Monocentric model. The Barcelona Metropolitan Area case," ERSA conference papers ersa11p511, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p511

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    References listed on IDEAS

    1. Tomoya Mori, 2006. "Monocentric Versus Polycentric Models in Urban Economics," KIER Working Papers 611, Kyoto University, Institute of Economic Research.
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    6. Joan Carles Martori & Jordi Suriñach-Caralt, 2001. "Classical models of urban population density. The case of Barcelona Metropolitan Area," ERSA conference papers ersa01p46, European Regional Science Association.
    7. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
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    14. Mur, Jesús & Angulo, Ana, 2009. "Model selection strategies in a spatial setting: Some additional results," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 200-213, March.
    15. McDonald, John F. & Bowman, H. Woods, 1976. "Some tests of alternative urban population density functions," Journal of Urban Economics, Elsevier, vol. 3(3), pages 242-252, July.
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