Discussion and Working Papers:
The urban quality of life premium , submitted
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Working Paper, 08/2025: Working Paper
Berlin School of Economics Discussion Paper No. 57, 12/2024: Discussion Paper
IZA Discussion Paper No. 17549, 12/2024: Discussion Paper
Link to our GitHub Directory and Toolkit: ABRS Toolkit
Media Coverage: BSoE Insights Article ; BSoE Insights Interview, LSE Policy Blog , der Makronom (in German), Centre Piece Magazine (Vol. 30 (2)) 2025
Link to Presentation Slides: Slides
Abstract: We employ a quantitative spatial model that accounts for trade frictions---generated by trade costs and non-tradable services---and mobility frictions---generated by idiosyncratic tastes and local ties---to recover unobserved quality of life (QoL) and estimate the urban QoL premium. For Germany, we find that a city twice as large offers, on average, a 22% higher QoL to the average resident—far exceeding the urban wage premium of 4%. Our model-based Monte Carlo simulations suggest that the lack of strong empirical evidence for an urban QoL premium in earlier literature likely stems from measurement error in the Rosen-Roback framework due to omitted spatial frictions.
Spatial Policies and Heterogeneous Employment Responses, submitted
(with Marcel Henkel)
Working Paper, 08/2025: Working Paper
Berlin School of Economics Discussion Paper No. 63, 03/2025: Discussion Paper
SSRN Research Paper: Discussion Paper
BSoE Insights Interview
Abstract: Place-based policies influence not only where people work, but also whether they work. Using quasi-experimental variation from Germany’s 2011 Census we show that redistributive transfers to local governments increase female labor force participation. To explain these results, we develop a spatial general equilibrium model in which workers decide on their location and whether to work in the market or the home sector, and this decision is impacted by local public goods provision. Optimizing spatial policies for the German economy generates welfare gains of 2.7 % and real GDP gains of 2.1 %, substantially larger than gains predicted by full-employment models.
Quality of life in a dynamic spatial model
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Link to latest paper version: Working Paper
CESifo Working Paper No. 8767, 12/2020: Discussion Paper
CEPR Discussion Paper No. 15594, 12/2020: Discussion Paper
CentrePiece Spring 2021: "Lockdown and the social life of big cities": Non-technical summary
LSE Blog: "Lockdown shows us it is not work that attracts us to big cities - but the social life" : Blog
Abstract: The economics literature on quality of life is rooted in the canonical frictionless spatial equilibrium framework. We show how to measure quality of life and evaluate quality-of-life policies within a dynamic spatial model with heterogeneous, imperfectly mobile, and forward-looking workers. We find that the canonical spatial equilibrium framework understates spatial quality-of-life differentials, the urban quality-of-life premium and the value of local non-marketed goods. Unlike the canonical spatial equilibrium framework, a dynamic spatial model predicts local welfare effects that motivate many place-based policies seeking to improve quality of life.
Work in progress:
Military to Market: The Economic Impact of Large-scale Supply Shocks on the Housing Market
Note: Three-year funding for this research project by the German Science Foundation (DFG; ca 430,000 Euro)
(with Christian Helmers, Constantin Tielkes and Felix Weinhardt)
Valuing amenities where we live and work
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Older Papers:
The stationary spatial equilibrium with migration costs
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Note: This paper precedes the paper "Quality of life in a dynamic spatial model". Its dynamic, spatial model is discussed in detail in the current discussion paper version of "Quality of life in a dynamic spatial model".
The Role of Local Public Goods for Gender Gaps in the Spatial Economy
(with Marcel Henkel)
CRED Research Paper No. 33: Discussion Paper
Note: This paper precedes the current working paper "Spatial Policies and Heterogeneous Employment Responses".