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Choosing a place to live and a workplace

Author

Listed:
  • 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.

Suggested Citation

  • Huberto M. Ennis & Santiago M. Pinto & Alberto Porto, 2006. "Choosing a place to live and a workplace," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 15-51, January-D.
  • Handle: RePEc:lap:journl:546
    as

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    References listed on IDEAS

    as
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    3. Brown, Charles C. & Oates, Wallace E., 1987. "Assistance to the poor in a federal system," Journal of Public Economics, Elsevier, vol. 32(3), pages 307-330, April.
    4. Wellisch, Dietmar, 1994. "Interregional spillovers in the presence of perfect and imperfect household mobility," Journal of Public Economics, Elsevier, vol. 55(2), pages 167-184, October.
    5. Thurston Lawrence & Yezer Anthony M. J., 1994. "Causality in the Suburbanization of Population and Employment," Journal of Urban Economics, Elsevier, vol. 35(1), pages 105-118, January.
    6. Richard J. Arnott & Joseph E. Stiglitz, 1979. "Aggregate Land Rents, Expenditure on Public Goods, and Optimal City Size," The Quarterly Journal of Economics, Oxford University Press, vol. 93(4), pages 471-500.
    7. Polinsky, A Mitchell & Shavell, Steven, 1975. "The Air Pollution and Property Value Debate," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 100-104, February.
    8. Flatters, Frank & Henderson, Vernon & Mieszkowski, Peter, 1974. "Public goods, efficiency, and regional fiscal equalization," Journal of Public Economics, Elsevier, vol. 3(2), pages 99-112, May.
    9. Caroline Minter Hoxby, 1996. "Are Efficiency and Equity in School Finance Substitutes or Complements?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 51-72, Fall.
    10. Pinto, Santiago M., 2004. "Assistance to poor households when income is not observed: targeted in-kind and in-cash transfers," Journal of Urban Economics, Elsevier, vol. 56(3), pages 536-553, November.
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    12. Zodrow, George R. & Mieszkowski, Peter, 1986. "Pigou, Tiebout, property taxation, and the underprovision of local public goods," Journal of Urban Economics, Elsevier, vol. 19(3), pages 356-370, May.
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    15. Peter Mieszkowski & Edwin S. Mills, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-147, Summer.
    16. Pinto, Santiago M., 2002. "Residential Choice, Mobility, and the Labor Market," Journal of Urban Economics, Elsevier, vol. 51(3), pages 469-496, May.
    17. Gilbert, Guy & Picard, Pierre, 1996. "Incentives and optimal size of local jurisdictions," European Economic Review, Elsevier, vol. 40(1), pages 19-41, January.
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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.

    More about this item

    Keywords

    Commuting; local public goods; suburbanization; local infrastructure;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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