Within a country, there are major differences between regions in terms of economic activity and socio-economic, cultural and environmental conditions. These interact to a considerable extent with people's preferences as to where they want to settle and the resulting (dis)agglomeration effects....

Using a quantitative spatial model as a data-generating process, we explore how spatial frictions affect the measurement of quality of life. We find that under a canonical parameterization, mobility frictions-generated by idiosyncratic tastes and local ties-dominate trade frictions- generated by...