Migration and urban economic dynamics

Morris Davis, Jonas Fisher and Marcelo Veracierto

Journal of Economic Dynamics and Control, 2021, vol. 133, issue C

Abstract: What generates the large amount of heterogeneity and persistence in U.S. city growth rates? To answer this question we construct a dynamic general equilibrium model of urban migration that is consistent with the approximately linear relation between gross and net migration rates that we uncover in a panel of 381 metropolitan statistical areas. Consistency with this relation together with the model’s structure of moving costs delivers a parsimonious reduced form in which competitive equilibrium allocations are given by the solution to a city’s social planner problem subject to quadratic population adjustment costs. A calibrated version of the model indicates that empirically measured total factor productivity shocks account for most of the short-run and long-run population dynamics observed in U.S. data.

Keywords: Persistent urban decline; Urban economic dynamics; Gross migration; Net migration (search for similar items in EconPapers)
JEL-codes: E0 O4 R0 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016518892100169X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:133:y:2021:i:c:s016518892100169x

DOI: 10.1016/j.jedc.2021.104234

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().