How do people arrange themselves when they are free to choose work and residence locations, when commuting is costly, and when increasing returns may affect production? We consider this problem when the location set is discrete and households have heterogenous preferences over...

In a city where individuals endogenously choose their residential location, firms determine their spatial efficiency wage and a geographical red line beyond which they do not recruit workers. This is because workers experiencing longer commuting trips provide lower effort levels than those...

This paper develops models of spatial equilibrium in which a central metropolis emerges to supply manufactured goods to an agricultural hinterland. The location of the metropolis is not fully determined by the location of resources: as long as it is not too far from the geographical center of...

We study how urban land use fragmentation affects the subjective wellbeing of city residents. Therefore, we calculate fragmentation metrics based on the European Urban Atlas for 15,000 households in the German Socio-Economic Panel. Using random and fixed effects specifications, we find that...

This paper develops a model of the geographic distribution of crime in an urban area. Agents select their occupation, residence, consumption, and housing. The paper is the first to formally study how the location of crime, the residence of workers, and housing prices are affected by the spatial...