Neighborhood Choice and Segregation

Question 1

on which factors are we focusing as determinants of the location of households?

Answer 1

• commuting costs (focus before)
• Local Public Goods
• Taxes
• Neighborhood characteristics

Question 2

we often observe considerable amounts of segregation. The question is now

Answer 2

from an economic point of view: what causes self-selection and segregation? Why do people with the same educational, ethnical, regious, socioeconomic background tend to cluster together?

Question 3

sobre la desigualdad territorial de los servicios e intentas solucionarla

Answer 3

keep in mind: by improving the situation you might just move the poverty as the price of land rights/housing increases as the services increase

Question 4

Demand for local public good and the segregation deriving from it

Answer 4

demand curves reflect willingness to pay
-> is the tax too high, people will move
-> is the good provided below your demand, you will move as well
-> leading to spatial segregation of residents with similar characteristics or views

Question 5

name positive and negative externalities resulting from living in a neighborhood

Answer 5

positive: children benefit from being in a school with childer of higly educated parents
negative: living next to people who sell drugs

Question 6

Ethnicity and Neighborhood choice

Answer 6

can be due to the preference living close to people sharing the same culture AND another important reason for ethnic segregation is income segregation!

Question 7

why should we worry abt segregation in cities?

Answer 7

concentration of low-income and minority households leads to Spatial Mismatch
-> jobs located in other areas, higher commuting costs
-> councils have fewer sources to spend in school -> schools have to deal with drug use and crime + no benefits from externalities from highly-educated neighboors