Income, distance and amenities. An empirical analysis

Rafa Madariaga (), Joan Carles Martori and Ramon Oller ()

Empirical Economics, 2014, vol. 47, issue 3, 1129-1146

Abstract: This paper analyses 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 (given traits of urban area) or be created by other agents’ decisions. We first test the simple model relating income to distance. Then we introduce and test the model with exogenous amenities; recreational areas, transportation systems, health, educational and cultural infrastructure. In the third stage we test the model with spatial effects. We present evidence that any model with spatial effects improves significantly the empirical results. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Monocentric model; Income-distance relationship; Spatial effects; Amenities; C52; R14; R21; R22 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s00181-013-0772-8

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