EconPapers    
Economics at your fingertips  
 

Local Ties in Spatial Equilibrium

Mike Zabek

American Economic Journal: Macroeconomics, 2024, vol. 16, issue 2, 287-317

Abstract: Someone who lives in an economically depressed place was probably born there. And having workers with local ties who prefer to live in their birthplaces leads to smaller migration responses in depressed places. Smaller migration responses lead to lower real incomes and make incomes more volatile, a form of hysteresis. Local ties can also persist for generations. Subsidies to economically depressed places cause smaller distortions, because few people want to move to depressed places. Finally, subsidies to productive places increase aggregate productivity, as they induce more migration.

JEL-codes: J22 J23 J31 J61 R23 Z13 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/mac.20210326 (application/pdf)
https://doi.org/10.3886/E192051V1 (text/html)
https://www.aeaweb.org/doi/10.1257/mac.20210326.appx (application/pdf)
https://www.aeaweb.org/doi/10.1257/mac.20210326.ds (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Local Ties in Spatial Equilibrium (2019) Downloads
Working Paper: Local Ties in Spatial Equilibrium (2018) Downloads
Working Paper: Local Ties in Spatial Equilibrium (2018) Downloads
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:aea:aejmac:v:16:y:2024:i:2:p:287-317

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/mac.20210326

Access Statistics for this article

American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist

More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2025-03-22
Handle: RePEc:aea:aejmac:v:16:y:2024:i:2:p:287-317