Jump to ContentJump to Main Navigation
Agglomeration Economics$
Users without a subscription are not able to see the full content.

Edward L. Glaeser

Print publication date: 2010

Print ISBN-13: 9780226297897

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226297927.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 19 October 2019

Who Benefits Whom in the Neighborhood?

Who Benefits Whom in the Neighborhood?

Demographics and Retail Product Geography

Chapter:
(p.181) 6 Who Benefits Whom in the Neighborhood?
Source:
Agglomeration Economics
Author(s):
Joel Waldfogel
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226297927.003.0007

This chapter presents a sensitivity of the nearby availability of products to preferences, measured along multiple dimensions. This evidence indicates that agglomeration rewards members of agglomerating groups via the availability of products in the local market. It provides part of the explanation for residential segregation and a first step toward assessing the impact of private goods and the tendency to agglomerate. Persons of similar preferences who agglomerate experience greater availability of goods targeted to their tastes. The idea that agglomeration benefits consumers through supply-side nonconvexities suggests a possibility of nonlinear effects of group size on welfare. The chapter addresses three empirical questions. First, it asks how “preferences” differ across groups (race, education, income), and uses the 2004 Consumer Expenditure Survey, which shows how households allocate their expenditures across narrow product categories. The 2000 Census and the 2000 ZIP Business Patterns show that the availability of outlets in a category varies with the number of persons, by type, in local areas. Finally, the chapter discusses whether the mix of products is sensitive to the mix of local preferences, or whether people derive benefit through the product market from agglomerating with persons of similar preferences.

Keywords:   agglomerating groups, local market, residential segregation, local preferences, nonlinear effects

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.