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A pecuniary reason for income mixing

Article Abstract:

A pecuniary reason for income mixing based on consumer search was presented. An economic model of income mixing in which there is a single neighborhood consisting of many identical apartments large enough to house a single agent was proposed. The model also assumes that apartments are rented on a competitive spot market and that the number of neighborhood stores can be ignored. Empirical results showed that a low price for a given good is more beneficial to high valuation buyers than low valuation buyers. With consumer search, however, the probability of getting a low price increases in the proportion of low valuation buyers. This phenomenon provides high valuation buyers an incentive to live near low valuation buyers. Furthermore, buyers have an incentive to live near neighbors whose valuations have no correlation with theirs when there are many goods.

Author: Frankel, David M.
Publisher: Elsevier B.V.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1998
Consumer Behavior, Pricing Policy, Models

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The retail price of inequality

Article Abstract:

This article evaluates the realtionship between a city's income distribution and retail prices. Results show that an increase of lower-middle income households is associated with lower prices, revealing that greater income inequality raises the prices fpr low income households making human capital harder to invest in.

Author: Frankel, David M., Gould, Eric D.
Publisher: Elsevier B.V.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 2001
Israel, Statistical Data Included, Evaluation, Economic aspects, Prices and rates, Retail industry, Retail trade, Equality, Human capital

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Waiting for Mr. Right: rising inequality and declining marriage rates

Article Abstract:

Women search longer for their first or second husband in cities with higher male wage inequality. A casual link is established by controlling for city fixed effects and city-specific time trends, and by using inequality in the woman's state-of-birth as a proxy for local male inequality.

Author: Gould, Eric D., Parseman, M. Daniele
Publisher: Elsevier B.V.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 2003
United States, Forecasts, trends, outlooks, Income Distribution, Forecasts and trends, Demographic aspects, Market trend/market analysis, Married people

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Subjects list: Pricing, Income distribution, Analysis
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