Where in cities do "rich" and "poor" people live? The urban economics model revisited

Rémi Lemoy (), Charles Raux () and Pablo Jensen ()
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Rémi Lemoy: uni.lu - Université du Luxembourg = University of Luxembourg = Universität Luxemburg, LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique
Charles Raux: LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique
Pablo Jensen: Phys-ENS - Laboratoire de Physique de l'ENS Lyon - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - CNRS - Centre National de la Recherche Scientifique, IXXI - Institut Rhône-Alpin des systèmes complexes - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UJF - Université Joseph Fourier - Grenoble 1 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique

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Abstract: We exploit the power of the Alonso-Mills-Muth (AMM) urban economics model and show that various utility functions and plausible conditions offer alternative explanations of households' location by income within a city. These include the existence of a "rich" center and more complex socio-spatial urban forms for instance alternating a rich center, poor suburbs and a rich outer ring, which have not yet been derived from the AMM model to our knowledge. In doing so we combine analytical ideas and illustrations by the means of an agent-based model. The hypothesis of a central or non-central amenity is also studied, leading to different insights on the issue.

Keywords: urban economics; location choice; income; amenity; agent-based model (search for similar items in EconPapers)
Date: 2013-03-27
New Economics Papers: this item is included in nep-cmp, nep-cwa, nep-geo and nep-ure
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