Local redistribution, welfare and suburbanization
نویسنده
چکیده
This paper analyzes redistribution by municipalities in a metropolitan area using the classical model of residential land use in a monocentric city. Crossing bid rent curves lead to spatial segregation of household types which might shield high-income households from redistribution by municipalities. If rich households live farer away from the central business district than poor households, they prefer redistribution by the central city to redistribution under the auspices of the entire metropolitan area district if the central city area is not too large and the suburbs are not small. If the central city were very large, heterogeneous redistribution policy in the metropolitan area might be even to high-income earners’ disadvantage.
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