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The Effect of a Change in Wages on Welfare in a Two–Class Monocentric City

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  • Youngsun Kwon

Abstract

This paper performs a comparative static analysis to derive the effect of a change in the wages of the rich living in the suburban area of a city on the welfare of the poor living in the central area of the city. It assumes that commuting cost is a function of distance and wages. A sufficient condition for an increase in the wages of the rich to harm the welfare of the poor is that the time cost of commuting is greater than the operating cost of commuting.

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  • Youngsun Kwon, 2003. "The Effect of a Change in Wages on Welfare in a Two–Class Monocentric City," Journal of Regional Science, Wiley Blackwell, vol. 43(1), pages 63-72, February.
    • Handle: RePEc:bla:jregsc:v:43:y:2003:i:1:p:63-72
    DOI: 10.1111/1467-9787.00289
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    Cited by:

    1. Shumin Zhou & Huijun Sun & Tianchao Guan & Tongfei Li, 2018. "Equilibrium Model of Housing Choice for Heterogeneous Households under Public Rental Housing Policy," Sustainability, MDPI, vol. 10(12), pages 1-21, November.
    2. Li, Zhi-Chun & Ma, Jia-Chun, 2021. "Investing in inter-city and/or intra-city rail lines? A general equilibrium analysis for a two-city system," Transport Policy, Elsevier, vol. 108(C), pages 59-82.
    3. Li, Zhi-Chun & Chen, Ya-Juan & Wang, Ya-Dong & Lam, William H.K. & Wong, S.C., 2013. "Optimal density of radial major roads in a two-dimensional monocentric city with endogenous residential distribution and housing prices," Regional Science and Urban Economics, Elsevier, vol. 43(6), pages 927-937.
    4. Li, Zhi-Chun & Wang, Ya-Dong, 2018. "Analysis of multimodal two-dimensional urban system equilibrium for cordon toll pricing and bus service design," Transportation Research Part B: Methodological, Elsevier, vol. 111(C), pages 244-265.
    5. Zhi-Chun Li & Li Cheng & André de Palma, 2023. "Ring road investment, cordon tolling, and urban spatial structure: Formulation and a case study," THEMA Working Papers 2023-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    6. Li, Zhi-Chun & Cheng, Li & de Palma, André, 2024. "Ring road investment, cordon tolling, and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 182(C).
    7. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C. & Choi, Keechoo, 2012. "Modeling the effects of integrated rail and property development on the design of rail line services in a linear monocentric city," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 710-728.

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