Reference no: EM133134184

Problem 1

Please discuss the following statements brie?y. Use the materials from class to provide arguments to support and / or refute the statements. Please note that some elements of each statements may be correct and others incorrect. Draw a picture or diagram if that helps to make your point. State your assumptions.

1. Provide two reasons Why income inequality rises with city size. Explain the logic of each reason.

2. Explain precisely what a Gini coef?cient is, and why the coe?icient is a measure of inequality.

3. The Davis and Dingel model (Comparative Advantage of Cities) says that the relative supply of high skill workers will be higher in larger cities because of the greater availability of cultural amenities there.

4. There are many more poor people in large cities than small because large cities are just not well-suited to people with little education or marketable skills.