Abstract
In this paper, racial prejudice is introduced into an urban model and results about racial discrimination and residential segregation are derived. To be specific, a household maximization problem is used to determine the market rent-distance function that gives no household an incentive to move. Prejudice is introduced by assuming that the racial composition of a location affects a household's utility and by deriving, for both blacks and whites, rent-distance functions that reflect racial composition. These rent-distance functions imply that if whites prefer segregation and some blacks prefer integration, no stable locational equilibrium exists for both races without discrimination.
Original language | English (US) |
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Pages (from-to) | 383-396 |
Number of pages | 14 |
Journal | Journal of Urban Economics |
Volume | 3 |
Issue number | 4 |
DOIs | |
State | Published - Oct 1976 |
Externally published | Yes |
ASJC Scopus subject areas
- Economics and Econometrics
- Urban Studies