Latent Tastes, Incomplete Stratification, and the Plausibility of Vertical Sorting Models

Jacob Fishman, V. Kerry Smith

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

This paper uses the 2011 Phoenix Area Social Survey to evaluate the plausibility of the assumptions made with pure characteristics sorting models to rationalize incomplete stratification of households across local communities by income. The analysis with the New Ecological Paradigm, a well-recognized index of environmental attitudes, confirms the correlations in equilibrium outcomes implied by these models. As a result, it provides the first empirical support for the role of differences in the tastes for public goods as one explanation that provides the rationale for the commonly observed sorting outcomes.

Original languageEnglish (US)
Pages (from-to)339-361
Number of pages23
JournalEnvironmental and Resource Economics
Volume66
Issue number2
DOIs
StatePublished - Feb 1 2017

Keywords

  • Equilibrium sorting models
  • Local public goods
  • New Ecological Paradigm

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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