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Quality of life in a dynamic spatial model

Ahlfeldt, Gabriel M., Bald, Fabian, Roth, Duncan and Seidel, Tobias (2020) Quality of life in a dynamic spatial model. CEP Discussion Papers (1736). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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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.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: © 2020 The Authors
Divisions: Geography & Environment
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J20 - General
J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General
R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R20 - General
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R30 - General
R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R50 - General
Date Deposited: 19 Jan 2021 16:39
Last Modified: 21 Jan 2021 00:49
URI: http://eprints.lse.ac.uk/id/eprint/108498

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