IDEAS home Printed from https://ideas.repec.org/a/cog/urbpla/v1y2016i1p68-78.html
   My bibliography  Save this article

Spatial Segregation, Redistribution and Welfare: A Theoretical Model

Author

Listed:
  • Tommaso Gabrieli

    (Bartlett School of Planning, University College London, UK)

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 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.

Suggested Citation

  • Tommaso Gabrieli, 2016. "Spatial Segregation, Redistribution and Welfare: A Theoretical Model," Urban Planning, Cogitatio Press, vol. 1(1), pages 68-78.
    • Handle: RePEc:cog:urbpla:v1:y:2016:i:1:p:68-78
    DOI: 10.17645/up.v1i1.537
    as

    Download full text from publisher

    File URL: https://www.cogitatiopress.com/urbanplanning/article/view/537
    Download Restriction: no
    File URL: https://libkey.io/10.17645/up.v1i1.537?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sonia Arbaci & Ian Rae, 2013. "Mixed-Tenure Neighbourhoods in London: Policy Myth or Effective Device to Alleviate Deprivation?," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(2), pages 451-479, March.
    2. Alesina, Alberto & La Ferrara, Eliana, 2005. "Preferences for redistribution in the land of opportunities," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 897-931, June.
    3. Zenou, Yves, 2013. "Spatial versus social mismatch," Journal of Urban Economics, Elsevier, vol. 74(C), pages 113-132.
    4. Nick Bailey & Maria Gannon & Ade Kearns & Mark Livingston & Alastair H Leyland, 2013. "Living Apart, Losing Sympathy? How Neighbourhood Context Affects Attitudes to Redistribution and to Welfare Recipients," Environment and Planning A, , vol. 45(9), pages 2154-2175, September.
    5. Roland Bénabou & Jean Tirole, 2006. "Belief in a Just World and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 699-746.
    6. Thomas Piketty, 1995. "Social Mobility and Redistributive Politics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 551-584.
    7. Corneo, Giacomo & Gruner, Hans Peter, 2002. "Individual preferences for political redistribution," Journal of Public Economics, Elsevier, vol. 83(1), pages 83-107, January.
    8. Gabrieli, T., 2010. "Diverse societal beliefs and redistributive policies, but equal welfare: The trade-off effect of information," Working Papers 10/04, Department of Economics, City University London.
    9. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
    10. Raquel Fernandez & Richard Rogerson, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(1), pages 135-164.
    11. Sonia Arbaci, 2007. "Ethnic Segregation, Housing Systems and Welfare Regimes in Europe," European Journal of Housing Policy, Taylor and Francis Journals, vol. 7(4), pages 401-433.
    12. Dominique Prunetti & Alexandre Muzy & Eric Innocenti & Xavier Pieri, 2014. "Utility-based Multi-agent System with Spatial Interactions: The Case of Virtual Estate Development," Computational Economics, Springer;Society for Computational Economics, vol. 43(3), pages 271-299, March.
    13. Roland Bénabou, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(2), pages 237-264.
    14. Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February.
    15. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
    16. Durlauf, Steven N, 1996. "A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
    17. Sonia Arbaci, 2007. "Ethnic Segregation, Housing Systems and Welfare Regimes in Europe," International Journal of Housing Policy, Taylor & Francis Journals, vol. 7(4), pages 401-433.
    18. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    19. Fong, Christina, 2001. "Social preferences, self-interest, and the demand for redistribution," Journal of Public Economics, Elsevier, vol. 82(2), pages 225-246, November.
    20. Dominique Prunetti & Alexandre Muzy & Eric Innocenti & Xavier Pieri, 2014. "Utility-based Multi-agent System with Spatial Interactions: The Case of Virtual Estate Development," Computational Economics, Springer;Society for Computational Economics, vol. 43(3), pages 271-299, March.
    21. Dilip Mookherjee & Stefan Napel & Debraj Ray, 2010. "Aspirations, Segregation, and Occupational Choice," Journal of the European Economic Association, MIT Press, vol. 8(1), pages 139-168, March.
    22. Roland Benabou, 1993. "Workings of a City: Location, Education, and Production," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 619-652.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tommaso Gabrieli, 2016. "Spatial Segregation, Redistribution and Welfare: A Theoretical Model," Urban Planning, Cogitatio Press, vol. 1(1), pages 68-78.
    2. Andreas Georgiadis & Alan Manning, 2012. "Spend it like Beckham? Inequality and redistribution in the UK, 1983–2004," Public Choice, Springer, vol. 151(3), pages 537-563, June.
    3. Cervellati, Matteo & Esteban, Joan & Kranich, Laurence, 2010. "Work values, endogenous sentiments redistribution," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 612-627, October.
    4. Sanghamitra Bandyopadhyay & Joan Esteban, 2007. "Redistributive Taxation and PublicExpenditures," STICERD - Distributional Analysis Research Programme Papers 95, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    5. Corneo, Giacomo & Neher, Frank, 2015. "Democratic redistribution and rule of the majority," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 96-109.
    6. Laurence Kranich & Matteo Cervellati & Joan Esteban, 2006. "The Social Contract with Endogenous Sentiments," Discussion Papers 06-06, University at Albany, SUNY, Department of Economics.
    7. Ilpo Kauppinen & Panu Poutvaara, 2019. "Preferences for Redistribution and International Migration," ifo Working Paper Series 283, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    8. Alberto Alesina & George-Marios Angeletos, 2005. "Fairness and Redistribution," American Economic Review, American Economic Association, vol. 95(4), pages 960-980, September.
    9. Neher, Frank, 2012. "Preferences for redistribution around the world," Discussion Papers 2012/2, Free University Berlin, School of Business & Economics.
    10. Pfarr Christian & Ulrich Volker, 2011. "Discrete-Choice-Experimente zur Ermittlung der Präferenzen für Umverteilung," Review of Economics, De Gruyter, vol. 62(3), pages 232-262, December.
    11. Laurence Kranich & Matteo Cervellati & Joan Esteban, 2010. "Work Values, Endogenous Sentiments and Redistribution," Discussion Papers 10-05, University at Albany, SUNY, Department of Economics.
    12. Pfarr, Christian, 2012. "Meltzer-Richard and social mobility hypothesis: revisiting the income-redistribution nexus using German choice data," MPRA Paper 43325, University Library of Munich, Germany.
    13. Gabrieli, T., 2010. "Diverse societal beliefs and redistributive policies, but equal welfare: The trade-off effect of information," Working Papers 10/04, Department of Economics, City University London.
    14. Neher, Frank, 2012. "Preferences for Redistribution around the World," Working Papers 26/2012, Universidade Portucalense, Centro de Investigação em Gestão e Economia (CIGE).
    15. Kuhn, Andreas, 2011. "In the eye of the beholder: Subjective inequality measures and individuals' assessment of market justice," European Journal of Political Economy, Elsevier, vol. 27(4), pages 625-641.
    16. Laméris, Maite D. & Garretsen, Harry & Jong-A-Pin, Richard, 2020. "Political ideology and the intragenerational prospect of upward mobility," European Journal of Political Economy, Elsevier, vol. 62(C).
    17. repec:hal:wpspec:info:hdl:2441/eu4vqp9ompqllr09hacc56d41 is not listed on IDEAS
    18. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09iak4384sp is not listed on IDEAS
    19. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09iak4384sp is not listed on IDEAS
    20. Kerr, William R., 2014. "Income inequality and social preferences for redistribution and compensation differentials," Journal of Monetary Economics, Elsevier, vol. 66(C), pages 62-78.
    21. Elvire Guillaud, 2008. "Preferences for redistribution: a European comparative analysis," Working Papers halshs-00586260, HAL.
    22. Kuhn, Andreas, 2009. "In the Eye of the Beholder: Subjective Inequality Measures and the Demand for Redistribution," IZA Discussion Papers 4360, Institute of Labor Economics (IZA).
    23. Zhou Xun, 2015. "Preference for Redistribution and Inequality Perception in China: Evidence from the CGSS 2006," AMSE Working Papers 1518, Aix-Marseille School of Economics, France.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cog:urbpla:v1:y:2016:i:1:p:68-78. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: António Vieira or IT Department (email available below). General contact details of provider: https://www.cogitatiopress.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.