Bilal, Adrien; Rossi-Hansberg, Esteban - In: Econometrica 89 (2021) 5, pp. 2459-2495
The location of individuals determines their job and schooling opportunities, amenities, and housing costs. We conceptualize the location choice of individuals as a decision to invest in a “location asset.” This asset has a current cost equal to the location's rent, and a future payoff...