OPTIMAL SPATIAL POLICIES, GEOGRAPHY, AND SORTING

• 成果类型: Article
• 署名作者: Fajgelbaum, Pablo D.; Gaubert, Cecile
• 署名单位: University of California System; University of California Los Angeles; National Bureau of Economic Research; University of California System; University of California Berkeley; Centre for Economic Policy Research - UK
• 刊物名称: QUARTERLY JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0033-5533
• DOI: 10.1093/qje/qjaa001
• 发表日期: 2020
• 页码: 959-1036
• 关键词: local economic-development; EFFICIENCY; PRODUCTIVITY; taxation; density; scale; TRADE; GOODS

摘要

We study optimal spatial policies in a quantitative trade and geography framework with spillovers and spatial sorting of heterogeneous workers. We characterize the spatial transfers that must hold in efficient allocations, as well as labor subsidies that can implement them. There exists scope for welfare-enhancing spatial policies even when spillovers are common across locations. Using data on U.S. cities and existing estimates of the spillover elasticities, we find that the U.S. economy would benefit from a reallocation of workers to currently low-wage cities. The optimal allocation features a greater share of high-skill workers in smaller cities relative to the observed allocation. Inefficient sorting may lead to substantial welfare costs.