Quality of life in a dynamic spatial model

Gabriel Ahlfeldt, Fabrian Bald, Duncan Roth and Tobias Seidel

No 15594, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Covid; Dynamic; Housing; Migration; Rents; Pollution; Productivity; Spatial equilibrium; Quality of life; Wages (search for similar items in EconPapers)
JEL-codes: J2 J3 R2 R3 R5 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Quality of life in a dynamic spatial model (2020)
Working Paper: Quality of Life in a Dynamic Spatial Model (2020)
Working Paper: Quality of life in a dynamic spatial model (2020)
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