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The Retail Price of Inequality

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  • Frankel, David M.
  • Gould, Eric D.

Abstract

This paper studies the relation between a city's income distribution and its retail price level using panel data. We find that an increase in the presence of lower middle income households, relative to poor or upper income households, is associated with lower prices. Our findings suggest that greater income inequality raises the prices that poor households face, thus making it harder for them to invest in human capital.
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Suggested Citation

  • Frankel, David M. & Gould, Eric D., 2001. "The Retail Price of Inequality," Journal of Urban Economics, Elsevier, vol. 49(2), pages 219-239, March.
    • Handle: RePEc:eee:juecon:v:49:y:2001:i:2:p:219-239
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    More about this item

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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