Quality of Life in a Dynamic Spatial Model

Gabriel Ahlfeldt, Fabian Bald, Duncan Roth and Tobias Seidel

No 8767, CESifo Working Paper Series from CESifo

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; welfare (search for similar items in EconPapers)
JEL-codes: J20 J30 R20 R30 R50 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-geo, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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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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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8767

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