Urban residential density and income
Donald Haurin1980, Journal of Urban Economics
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Abstract
Spatial variations in income have not been adequately accounted for in urban density regressions. Estimating equations incorporating household income are derived in a monocentric urban model. The technique used also yields an estimate of the income elasticity of demand for housing, found to be less than one.
Figures (1)
Key takeaways
- There are two related problems with empirical analysis based on the density equation expressed in (1) related to the spatial variation in household income.
- The next section indicates the correct form for the density equation in a model with a continuous income distribution.
- Based on this set of assumptions, the expectation is that increased income lowers density and that density declines with distance from the CBD.
- It was assumed that the distribution of income had the following form
- The discrete form directly points out the effects of household income and the price of land on urban density.
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