TY  - BOOK
AU  - Kleinman,Benny
AU  - Liu,Ernest
AU  - Redding,Stephen J.
ED  - National Bureau of Economic Research.
TI  - Dynamic Spatial General Equilibrium
T2  - NBER working paper series
PY  - 2021///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - July 2021; Hardcopy version available to institutional subscribers
N2  - 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
UR  - https://www.nber.org/papers/w29101
UR  - http://dx.doi.org/10.3386/w29101
ER  -