IDEAS home Printed from https://ideas.repec.org/a/sae/envirb/v36y2009i6p989-1007.html
   My bibliography  Save this article

The Interaction of Segregation and Suburbanization in an Agent-Based Model of Residential Location

Author

Listed:
  • Ciriyam Jayaprakash

    (Department of Physics, The Ohio State University, 191 West Woodruff Avenue, Columbus, OH 43210-1117, USA)

  • Keith Warren

    (College of Social Work, The Ohio State University, Stillman Hall, 1947 N College Road, Columbus, OH 43210, USA)

  • Elena Irwin

    (Department of Agricultural, Environmental and Development Economics, The Ohio State University, 2120 Fyffe Road, Columbus, OH 43210, USA)

  • Kan Chen

    (Department of Physics, National University of Singapore, 2 Science Drive, Singapore 117542)

Abstract

We present a model of the interaction of segregation and suburbanization in determining residential location. The model incorporates differential income between two classes of agents, a simplified market mechanism for the purchase of housing, and a simple geographic structure of one central city and four symmetrically arranged suburbs. Agents derive utility from neighborhood racial composition, the size of their lot, private amenities that are specific to neighborhoods, and public amenities that stretch across municipalities. We find that the public-amenities term leads to a positive-feedback loop in which migration to suburbs increases the public amenities in those municipalities while lowering amenities in the central city, thus sparking further migration. When the minority agents are uniformly less affluent than the majority agents, this dynamic produces discontinuity in segregation as measured by centralization. Such discontinuities are typical of first-order phase transitions. When minority and majority incomes overlap, significant regions appear over which there are multistable equilibria at high and low levels of segregation, along with considerable sensitivity to the initial distribution of minority agents. We discuss the implications of these findings.

Suggested Citation

  • Ciriyam Jayaprakash & Keith Warren & Elena Irwin & Kan Chen, 2009. "The Interaction of Segregation and Suburbanization in an Agent-Based Model of Residential Location," Environment and Planning B, , vol. 36(6), pages 989-1007, December.
  • Handle: RePEc:sae:envirb:v:36:y:2009:i:6:p:989-1007
    DOI: 10.1068/b33029
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/b33029
    Download Restriction: no

    File URL: https://libkey.io/10.1068/b33029?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. Oates, Wallace E, 1969. "The Effects of Property Taxes and Local Public Spending on Property Values: An Empirical Study of Tax Capitalization and the Tiebout Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 957-971, Nov./Dec..
    2. Thomas Maloutas & Nikos Karadimitriou, 2001. "Vertical Social Differentiation in Athens: Alternative or Complement to Community Segregation?," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(4), pages 699-716, December.
    3. Isaac Bayoh & Elena G. Irwin & Timothy Haab, 2006. "Determinants of Residential Location Choice: How Important Are Local Public Goods in Attracting Homeowners to Central City Locations?," Journal of Regional Science, Wiley Blackwell, vol. 46(1), pages 97-120, February.
    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. Camille Dumeignil & Jean-Yves Lesueur & Mareva Sabatier, 2021. "Cross-border labour mobility decisions: The effect of complementarities in local labour markets," Economics Bulletin, AccessEcon, vol. 41(3), pages 1036-1049.
    2. Reiner Eichenberger & David Stadelmann, 2009. "Consequences of Debt Capitalization: Property Ownership and Debt/Tax Choice," CREMA Working Paper Series 2009-08, Center for Research in Economics, Management and the Arts (CREMA).
    3. Barrow, Lisa & Rouse, Cecilia Elena, 2004. "Using market valuation to assess public school spending," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1747-1769, August.
    4. Calcagno, Peter T. & Hall, Joshua C. & Lawson, Robert A., 2010. "Objectivism versus subjectivism: A market test," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 445-448, November.
    5. Stephen Billings & Thomas Thibodeau, 2011. "Intrametropolitan Decentralization: Is Government Structure Capitalized in Residential Property Values?," The Journal of Real Estate Finance and Economics, Springer, vol. 42(4), pages 416-450, May.
    6. Bernd Hayo & Florian Neumeier, 2017. "Public Attitudes toward Fiscal Consolidation: Evidence from a Representative German Population Survey," Kyklos, Wiley Blackwell, vol. 70(1), pages 42-69, February.
    7. George R. Zodrow, 2019. "Intrajurisdictional Capitalization and the Incidence of the Property Tax," World Scientific Book Chapters, in: George R Zodrow (ed.), TAXATION IN THEORY AND PRACTICE Selected Essays of George R. Zodrow, chapter 16, pages 489-522, World Scientific Publishing Co. Pte. Ltd..
    8. Cheshire, Paul, 2009. "Policies for mixed communities: faith-based displacement activity?," LSE Research Online Documents on Economics 30783, London School of Economics and Political Science, LSE Library.
    9. Preethi Keekan & U Arabi, 2021. "Progressivity Trends in Municipal Property Taxes in Indian Cities: Major Impediments," Shanlax International Journal of Economics, Shanlax Journals, vol. 9(3), pages 45-48, June.
    10. Sung Hoon Kang & Mark Skidmore & Laura Reese, 2015. "The Effects of Changes in Property Tax Rates and School Spending on Residential and Business Property Value Growth," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(2), pages 300-333, June.
    11. Wildasin, David E. & Wilson, John Douglas, 1996. "Imperfect mobility and local government behaviour in an overlapping-generations model," Journal of Public Economics, Elsevier, vol. 60(2), pages 177-198, May.
    12. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    13. Thomas Maloutas, 2009. "Urban Outcasts: A Contextualized Outlook on Advanced Marginality," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 828-834, September.
    14. Terri Menke, 1987. "Economic Welfare and Urban Amenities Across Race-Sex Groups," Urban Studies, Urban Studies Journal Limited, vol. 24(2), pages 151-161, April.
    15. David Brasington & Don Haurin, 2005. "Capitalization of Parent, School, and Peer Group Components of School Quality into House Price," Departmental Working Papers 2005-04, Department of Economics, Louisiana State University.
    16. David Stadelmann & Steve Billon, 2012. "Capitalisation of Fiscal Variables and Land Scarcity," Urban Studies, Urban Studies Journal Limited, vol. 49(7), pages 1571-1594, May.
    17. Marcel Fafchamps & Forhad Shilpi, 2013. "Determinants of the Choice of Migration Destination," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 388-409, June.
    18. Christian A. L. Hilber, 2019. "Immobilienpreise und Immobilienzyklen und die Rolle von Angebotsbeschränkungen [The impact of local supply constraints on house prices and price dynamics]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 5(1), pages 37-65, November.
    19. Gabriel Ahlfeldt & Pantelis Koutroumpis & Tommaso Valletti, 2017. "Speed 2.0: Evaluating Access to Universal Digital Highways," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 586-625.
    20. Wu, Guiying Laura & Feng, Qu & Li, Pei, 2015. "Does local governments’ budget deficit push up housing prices in China?," China Economic Review, Elsevier, vol. 35(C), pages 183-196.

    More about this item

    Statistics

    Access and download statistics

    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:sae:envirb:v:36:y:2009:i:6:p:989-1007. 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: SAGE Publications (email available below). General contact details of provider: .

    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.