Choosing a place to live and a workplace
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.
Volume (Year): LII (2006)
Issue (Month): 1-2 (January-December)
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Web page: http://www.depeco.econo.unlp.edu.ar/economica/ing/
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