Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/229585
Authors: 
Ahlfeldt, Gabriel
Bald, Fabian
Roth, Duncan
Seidel, Tobias
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8767
Abstract: 
We develop a dynamic spatial model in which heterogeneous workers are imperfectly mobile and forward-looking and yet all structural fundamentals can be inverted without assuming that the economy is in a stationary spatial equilibrium. Exploiting this novel feature of the model, we show that the canonical spatial equilibrium framework understates spatial quality-of-life differentials, the urban quality-of-life premium and the value of local non-marketed goods. Unlike the canonical spatial equilibrium framework, the model quantitatively accounts for local welfare effects that motivate many place-based policies seeking to improve quality of life.
Subjects: 
Covid
dynamic
housing
migration
rents
pollution
productivity
spatial equilibrium
quality of life
wages
welfare
JEL: 
J20
J30
R20
R30
R50
Document Type: 
Working Paper

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