De Bartolome, Charles; Ross, Stephen L. - 2003
Tiebout's (1956) model of fiscal competition suggests income sorting between jurisdictions while the Alonso (1964 …), Mills (1967) and Muth (1969) model of the monocentric city suggests income sorting over space. However, strict income … city center are capitalized into house prices. In addition to the traditional equilibrium with income sorting, there are …