Using detailed data on friendship networks within neighborhoods, we investigate the importance of social interactions in one’s own residential neighborhood in the demand for housing quality. We find evidence consistent with the presence of peer effects, especially for households living in...

We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their jobs can be hit by a technological shock which decreases their productivity. They reside in a city, and commuting to the job center...