Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/172234 
Year of Publication: 
2017
Series/Report no.: 
Upjohn Institute Working Paper No. 17-272
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
We examine the relationship between local public goods, prices, wages, and population in an equilibrium inter-city model. Non-traded production, federal taxes, and imperfect mobility all affect how public goods (or "amenities" more broadly) should be valued from data. Reinterpreting the estimated effects of public infrastructure on prices and wages in Haughwout (2002), we find infrastructure over twice as valuable with our more general model. New estimates based on more years, cities, and data-sets indicate stronger wage and positive population effects of infrastructure. These imply higher values of infrastructure to firms, and also to households if moving costs are substantial.
Subjects: 
Infrastructure
public goods
capitalization
valuation
nontraded goods
federal taxation
imperfect mobility
JEL: 
H54
H2
H4
J3
R2
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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