Is it better to live in a US or a European city?

Mihai Tivadar

Regional Science and Urban Economics, 2010, vol. 40, issue 4, 221-227

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: Location; Income; Segregation; Amenities (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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