This paper provides a model for the well-known empirical phenomenon that houses of different quality experience different price developments. The typical pattern is that luxury houses appreciate more in boom periods and depreciate more during busts. The standard model of housing demand treats...

Local amenities are an important factor in the location choice of households. Heterogeneity in preferences of households tends to sort households over different locations which satisfy best their preferences given their constraints. In this paper, we analyze the effect of cultural heritage on...

It has often been observed that there is substantial spatial variation in criminality, i.e. criminality clusters in neighborhoods. Differences in neighborhood characteristics are one possible reason, social interactions another. In this paper we use detailed data on the residential location of...

Recent research shows that urban heritage can be an important factor of residential location choice, and that especially highly educated households are attracted by the presence of cultural heritage. In this paper, we use a location choice model to investigate the attractiveness of neighborhood...

The paper consider the skill-biased "share-altering" technical change hypothesis in a spatial general equilibrium model where skilled and unskilled individual may exhibit different preferences for local amenities. A main novelty - both for labour and urban economics- is that, under this...

According to Oswald's hypothesis homeowners experience more problems in finding a new job after becoming unemployed because their moving costs are higher than those of renters. Empirical research has revealed that this effect is counteracted by the job search behavior of unemployed homeowners:...