Heterogeneous Tastes and Incomplete Stratification in Sorting Models: What do Surveys Tell Us?
This paper uses the 2011 Phoenix Area Social Survey to evaluate the plausibility of the assumptions made by locational equilibrium sorting models to rationalize incomplete stratification of households across local communities by income. The analysis with a well-recognized index of environmental attitudes, the New Environmental Paradigm (NEP), confirms the correlations in equilibrium outcomes implied by these models. As a result, it supports the role of differences in the tastes for public goods as an explanation for the sorting outcomes.
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