Moving to high quality of life
AbstractThe U.S. population has been migrating to places with high perceived quality of life. A calibrated general-equilibrium model shows that such migration follows from broad-based technological progress. Rising national wages increase demand for consumption amenities. Under a baseline parameterization, a place with amenities for which individuals would pay 5 percent of their income grows 0.3 percent faster than an otherwise identical place. Productivity is shown to be a decreasingly important determinant of local population. The faster growth of high-amenity places is considerably strengthened if they have low initial equilibrium population density underpinned by low relative productivity. Places with identical amenities asymptotically converge to an identical population density, regardless of their relative productivity levels. An implication is that the high growth rates of high-amenity localities should eventually taper off.>
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Bibliographic InfoPaper provided by Federal Reserve Bank of Kansas City in its series Research Working Paper with number RWP 07-02.
Date of creation: 2007
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-14 (All new papers)
- NEP-GEO-2007-04-14 (Economic Geography)
- NEP-MIG-2007-04-14 (Economics of Human Migration)
- NEP-URE-2007-04-14 (Urban & Real Estate Economics)
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- Barrington-Leigh, Christopher P, 2008. "Weather as a transient influence on survey-reported satisfaction with life," MPRA Paper 25736, University Library of Munich, Germany.
- Rappaport, Jordan, 2008. "Consumption amenities and city population density," Regional Science and Urban Economics, Elsevier, vol. 38(6), pages 533-552, November.
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