Quality of life in a dynamic spatial model
Ahlfeldt, print.
, Bald, F., Roth, D. & Seidel, T.
(2020).
Quality of life in a dynamic spatial model.
(CEP Discussion Papers CEPDP1736).
London School of Economics and Political Science. Centre for Economic Performance.
, Bald, F., Roth, D. & Seidel, T.
(2020).
Quality of life in a dynamic spatial model.
(CEP Discussion Papers CEPDP1736).
London School of Economics and Political Science. Centre for Economic Performance.
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.
Explore Further
- J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement
- J3 - Wages, Compensation, and Labor Costs
- R2 - Household Analysis
- R3 - Production Analysis and Firm Location
- R5 - Regional Government Analysis
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Ahlfeldt, G., Bald, F., Roth, D. & Seidel, T.
(2020).
ABRS_RED_PriceIndices_LMR0717: Real Estate Data appendix to Quality of life in a dynamic spatial model.
[Dataset]. RWI - Leibniz Institute for Economic Research.
https://doi.org/10.7807/immo:red:abrs:lmr:v1