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Choosing a place to live and a workplace

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  • Huberto M. Ennis

    (Federal Reserve Bank of Richmond)

  • Santiago M. Pinto

    (West Virginia University)

  • Alberto Porto

    (National University of La Plata)

Abstract

We study how fiscal policies and commuting costs determine the geographical distribution of workers and households in an economy. We characterize equilibrium outcomes in a simple two-region model with commuting costs, local public goods, and local infrastructure. We also provide a short survey of the related economic literature that discusses other important factors driving the localization decisions of agents. Finally, we argue that the issues raise in this paper play a significant role in the geographic distribution of economic activity in the Greater Buenos Aires urban area of Argentina.

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Bibliographic Info

Article provided by Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata in its journal Económica.

Volume (Year): LII (2006)
Issue (Month): 1-2 (January-December)
Pages: 15-51

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Handle: RePEc:lap:journl:546

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Web page: http://www.depeco.econo.unlp.edu.ar/economica/ing/
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Related research

Keywords: Commuting; local public goods; suburbanization; local infrastructure;

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Cited by:
  1. Sebastian Galiani & Sukkoo Kim, 2008. "Political Centralization and Urban Primacy: Evidence from National and Provincial Capitals in the Americas," NBER Chapters, in: Understanding Long-Run Economic Growth: Geography, Institutions, and the Knowledge Economy, pages 121-153 National Bureau of Economic Research, Inc.

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