This paper considers a model of spatial allocation of investment capital under uncertainty. We demonstrate that the spatial concentration of economic activity depends upon properties of risk preferences deeper than risk aversion. The degree of so-called relative prudence unambiguously decides...

This paper considers a model of spatial allocation of investment capital under uncertainty. We demonstrate that the spatial concentration of economic activity depends upon properties of risk preferences deeper than risk aversion. The degree of so-called relative prudence unambiguously decides...

The impact of living in public rental housing on employment has been the subject of debate internationally. Theory suggests that restrictions on residential mobility, neighborhood effects, and the place-based housing subsidy itself contribute to the higher rates of unemployment often observed...

A wide range of aggregate data is used to examine the spatial variation in homeownership rates among a cross-section of 96 German planning regions. The analysis accounts for potential endogeneity of prices and affordability as well as for spatial dependence in homeownership levels. In addition...

Growing spatial inequality has led policymakers to enact tax breaks to attract corporate investment and jobs to economically peripheral regions. We demonstrate the importance of multi-plant firms’ physical capital structure for the efficacy of place-based policies by studying a bonus...

We provide evidence that lenders differ in their ex post incentives to internalize price-default externalities associated with the liquidation of collateralized debt. Using the mortgage market as a laboratory, we conjecture that lenders with a large share of outstanding mortgages on their...

We investigate how differences in set-up costs of various types affect the trade-off between global efficiency and spatial equity and show that the standard assumption of symmetry in fixed costs masks the existence of an interesting effect: the range of available varieties varies depends on the...

The impact of living in public rental housing on employment has been the subject of much debate internationally. Theory suggests that restrictions on residential mobility, neighborhood effects, and the place-based housing subsidy itself contribute to the higher rates of unemployment often...

This paper builds on a previous paper that evaluates a spatial hedonic difference-in-differences model to estimate the effects on home prices of a public housing project in North Dallas. Here, we perform a spatial falsification exercise by simulating the spatial GMM estimation on over 5,000...