Cities and Inequality
25 Pages Posted: 27 Aug 2016 Last revised: 27 Dec 2016
Date Written: August 25, 2016
We propose an innovative methodology to measure inequality between cities. If an even distribution of amenities across cities is assumed to increase the average well-being in a given country, inequality between cities can be evaluated through a multidimensional index of the Atkinson (1970) type. This index is shown to be decomposable into the sum of inequality indices computed on the marginal distributions of the amenities across cities, plus a residual term accounting for their correlation. We apply this methodology to assess inequality between Italian cities in terms of the distribution of public infrastructures, local services, economic and environmental conditions.
Keywords: Inequality; inequality aversion; social welfare; city
JEL Classification: R11; R12 ; R23
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