Quality of life in a dynamic spatial model

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." (Author's abstract, IAB-Doku) ((en))

Cite article

Ahlfeldt, G., Bald, F., Roth, D. & Seidel, T. (2020): Quality of life in a dynamic spatial model. (CEPR discussion paper 15594), London, 102 p.