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So close yet so unequal: Reconsidering spatial inequality in U.S. cities

Francesco Andreoli () and Eugenio Peluso ()

No 21/2016, Working Papers from University of Verona, Department of Economics

Abstract: We present a new methodological framework to capture the implications of spatial proximity on income inequality. We propose to measure inequality within and between individual neighborhoods through Gini-type spatial inequality indices. We investigate the statistical properties of these indices and we establish connections with geostatistics. We demonstrate that the basic income-flat tax scheme is the unique redistributive scheme capable of reducing income inequality without increasing spatial inequality, regardless of the spatial distribution of incomes. We use a rich income database taken from the census to establish new stylized facts about spatial inequality in major U.S. cities during the last 35 years. We also show that the geography of income inequality can be related to the impact of neighborhoods on income and health prospects of Americans.

Keywords: Gini; individual neighborhood; between inequality; variogram; geostatistics; flat tax; census; ACS; urban; U.S.; causal neighborhood effects; life expectancy (search for similar items in EconPapers)
JEL-codes: C34 D31 H24 P25 (search for similar items in EconPapers)
Pages: 75
Date: 2016-12
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Working Paper: So close yet so unequal: Reconsidering spatial inequality in U.S. cities (2017) Downloads
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