The relationship between the level of income and the population of an urban area is a familiar concern in urban economics. Existing models of this relationship assume a homogeneous labour force and hence no inequality in the size distribution of income within an urban area. In this paper we...

Hedonic regressions with house value as the dependent variable are widely used to study public services and neighborhood amenities. This paper builds on the theory of household bidding and sorting across communities to derive bid-function envelopes, which provide a form for these regressions....