![]() | |
![]() | Cookies? |
| |||||||
![]() | ![]() | ![]() | ![]() | ![]() | |||
![]() |
Abstract:![]()
CEP discussion paper
Dynamic spatial general equilibrium Benny Kleinman, Ernest Liu and Stephen J. Redding July 2021 Paper No' CEPDP1785: Full Paper ![]() We develop a dynamic spatial general equilibrium model with forward-looking investment and migration decisions. We characterize analytically the transition path of the spatial distribution of economic activity in response to shocks. We apply our framework to the re-allocation of US economic activity from the Rust Belt to the Sun Belt from 1965-2015. We find slow convergence to steady-state, with US states closer to steady-state at the end of our sample period than at its beginning. We find substantial heterogeneity in the effects of local shocks, which depend on capital and labor dynamics, and the spatial and sectoral incidence of these shocks. |
![]() |
| ||||
Copyright © CVER & LSE 2015
- 2022
| LSE, Houghton Street, London WC2A 2AE | Tel: +44(0)20 7955 7048 | Email: CVER@lse.ac.uk | Site updated 14 August 2022
|