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Spatial Segregation, Redistribution and Welfare: A Theoretical Model
[journal article]
Abstract This paper develops a theoretical model focusing on the effect that different neighborhood compositions can have on the formation of individual beliefs about economic opportunities. Specifically we highlight two effects that spatial segregation may have: (1) it can efficiently separate the individua... view more
This paper develops a theoretical model focusing on the effect that different neighborhood compositions can have on the formation of individual beliefs about economic opportunities. Specifically we highlight two effects that spatial segregation may have: (1) it can efficiently separate the individual effort choices of highly and low productive individuals, (2) it may imply that the median voter imposes a level of redistribution that is inefficient from the aggregate point of view. The trade-off implies that segregated and non-segregated cities may present very similar levels of aggregate welfare. We employ this framework to discuss how the structure of cities can play a role in the determination of US-type and Europe-type politico-economic equilibria and the implications for planning policies.... view less
Keywords
segregation; model construction; model theory; neighborhood; welfare; theory formation; social inequality; town; structure; self-assessment; social opportunity
Classification
Sociology of Settlements and Housing, Urban Sociology
General Sociology, Basic Research, General Concepts and History of Sociology, Sociological Theories
Free Keywords
median voter; redistribution; spatial segregation; welfare
Document language
English
Publication Year
2016
Page/Pages
p. 68-78
Journal
Urban Planning, 1 (2016) 1
ISSN
2183-7635
Status
Published Version; peer reviewed