Dynamic Spatial General Equilibrium /
Kleinman, Benny.
Dynamic Spatial General Equilibrium / Benny Kleinman, Ernest Liu, Stephen J. Redding. - Cambridge, Mass. National Bureau of Economic Research 2021. - 1 online resource: illustrations (black and white); - NBER working paper series no. w29101 . - Working Paper Series (National Bureau of Economic Research) no. w29101. .
July 2021.
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 reallocation 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.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Dynamic Spatial General Equilibrium / Benny Kleinman, Ernest Liu, Stephen J. Redding. - Cambridge, Mass. National Bureau of Economic Research 2021. - 1 online resource: illustrations (black and white); - NBER working paper series no. w29101 . - Working Paper Series (National Bureau of Economic Research) no. w29101. .
July 2021.
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 reallocation 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.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.