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A Life‐cycle Model of Locational Choice in a Two‐region Economy

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  • Paul G. Althaus

Abstract

The ability to use the amenities or other characteristics of a location may be a function of the length of time a household has resided in the location. We explore the implications of the hypothesis that the enjoyment of regional amenities depends on the accumulation of amenity‐specific human capital. We establish that the interaction of this human capital with regional wage rates determines life‐cycle locational trajectories. The model explains the timing of moves in the working and retirement periods of life as well as observed heterogeneity in household behavior. Small differences between households may result in dramatically different life‐cycle behavior.

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  • Paul G. Althaus, 2004. "A Life‐cycle Model of Locational Choice in a Two‐region Economy," Journal of Regional Science, Wiley Blackwell, vol. 44(2), pages 351-366, May.
    • Handle: RePEc:bla:jregsc:v:44:y:2004:i:2:p:351-366
    DOI: 10.1111/j.0022-4146.2004.00340.x
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    Cited by:

    1. Kono, Tatsuhito & Tsutaki, Keisuke, 2023. "Residential Land Use and Utilities of Multiple Generations with Lifespan Perspectives and Demographic Dynamics," MPRA Paper 117595, University Library of Munich, Germany.
    2. Peter Howie & Sean M. Murphy & John Wicks, 2010. "An Application of a Stated Preference Method to Value Urban Amenities," Urban Studies, Urban Studies Journal Limited, vol. 47(2), pages 235-256, February.

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