TY - JOUR
T1 - Locational Stratification by Environment
AU - Chen, Been Lon
AU - Huang, Chien Chieh
AU - Wang, Ping
PY - 2012/10
Y1 - 2012/10
N2 - This paper develops an equilibrium sorting model wherein perfectly mobile agents decide their optimal residential locations, either in a clean city or in a dirty city where production takes place. While residents in a dirty city suffer a higher level of pollution, they incur less commuting cost when going to work. When workers of different abilities choose different locations in which to reside, a segregated spatial configuration emerges, where those residing in a clean city have higher working time, human capital, and income than those in the dirty city. Analytic comparative-static and numerical welfare analyses are performed.
AB - This paper develops an equilibrium sorting model wherein perfectly mobile agents decide their optimal residential locations, either in a clean city or in a dirty city where production takes place. While residents in a dirty city suffer a higher level of pollution, they incur less commuting cost when going to work. When workers of different abilities choose different locations in which to reside, a segregated spatial configuration emerges, where those residing in a clean city have higher working time, human capital, and income than those in the dirty city. Analytic comparative-static and numerical welfare analyses are performed.
UR - https://www.scopus.com/pages/publications/84865760635
U2 - 10.1111/j.1467-9779.2012.01558.x
DO - 10.1111/j.1467-9779.2012.01558.x
M3 - Article
AN - SCOPUS:84865760635
SN - 1097-3923
VL - 14
SP - 711
EP - 735
JO - Journal of Public Economic Theory
JF - Journal of Public Economic Theory
IS - 5
ER -