Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
984055 | Regional Science and Urban Economics | 2010 | 7 Pages |
Abstract
We examine equilibria for a city where amenities are generated and valued by a social group, the rich. We considered two types of spatial structures: the American equilibrium (where rich households are located at the periphery) and the European equilibrium (where the rich households are concentrated in the central part of the city), proving that both can exist, and deriving their conditions. We find that the European equilibrium is more restrictive than the American one. The second main result is that, in terms of welfare, the American structure is superior to the European one.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Mihai Tivadar,