Why is central Paris rich and downtown Detroit poor? An amenity-based theory

Brueckner, Jan K., Thisse, Jacques-François and Zenou, Yves (1999) Why is central Paris rich and downtown Detroit poor? An amenity-based theory. European Economic Review, 43, (1), 91-107. (doi:10.1016/S0014-2921(98)00019-1).


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This paper presents an amenity-based theory of location by income. The theory shows that the relative location of different income groups depends on the spatial pattern of amenities in a city. When the center has a strong amenity advantage over the suburbs, the rich are likely to live at central locations. When the center's amenity advantage is weak or negative, the rich are likely to live in the suburbs. The virtue of the theory is that it ties location by income to a city's idiosyncratic characteristics. It thus predicts a multiplicity of location patterns across cities, consistent with real-world observation.

Item Type: Article
Digital Object Identifier (DOI): doi:10.1016/S0014-2921(98)00019-1
ISSNs: 0014-2921 (print)
Related URLs:
Keywords: location, income, central-city
Subjects: H Social Sciences > HT Communities. Classes. Races
H Social Sciences > HB Economic Theory
H Social Sciences > HV Social pathology. Social and public welfare
Divisions : University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 33075
Accepted Date and Publication Date:
10 January 1999Published
Date Deposited: 10 May 2007
Last Modified: 06 Aug 2015 02:30
URI: http://eprints.soton.ac.uk/id/eprint/33075

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