We study the economic effects of place-based policies in the housing market taking into account search frictions. Theory indicates that beneficial policies increase house prices, but temporarily reduce sales times of owner-occupied properties. We investigate both effects for a place-based...

"In the United States, workers in cities offering above-average nominal wages -- cities with high productivity, low quality-of-life, or inefficient housing sectors -- pay 30 percent more in federal taxes than otherwise identical workers in cities offering below-average wages. According to...