Spatial Segregation, Redistribution and Welfare: A Theoretical Model

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...

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Main Author: Tommaso Gabrieli
Format: Article
Language:English
Published: Cogitatio 2016-03-01
Series:Urban Planning
Subjects:
Online Access:https://www.cogitatiopress.com/urbanplanning/article/view/537
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author Tommaso Gabrieli
author_facet Tommaso Gabrieli
author_sort Tommaso Gabrieli
collection DOAJ
description 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.
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spelling doaj.art-918adad7bc734d74b05785f4a40a54082022-12-21T22:38:56ZengCogitatioUrban Planning2183-76352016-03-0111687810.17645/up.v1i1.537272Spatial Segregation, Redistribution and Welfare: A Theoretical ModelTommaso Gabrieli0Bartlett School of Planning, University College London, UKThis 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.https://www.cogitatiopress.com/urbanplanning/article/view/537median voterredistributionspatial segregationwelfare
spellingShingle Tommaso Gabrieli
Spatial Segregation, Redistribution and Welfare: A Theoretical Model
Urban Planning
median voter
redistribution
spatial segregation
welfare
title Spatial Segregation, Redistribution and Welfare: A Theoretical Model
title_full Spatial Segregation, Redistribution and Welfare: A Theoretical Model
title_fullStr Spatial Segregation, Redistribution and Welfare: A Theoretical Model
title_full_unstemmed Spatial Segregation, Redistribution and Welfare: A Theoretical Model
title_short Spatial Segregation, Redistribution and Welfare: A Theoretical Model
title_sort spatial segregation redistribution and welfare a theoretical model
topic median voter
redistribution
spatial segregation
welfare
url https://www.cogitatiopress.com/urbanplanning/article/view/537
work_keys_str_mv AT tommasogabrieli spatialsegregationredistributionandwelfareatheoreticalmodel