Equilibrium Outcomes and Amenity Valuation in a Multispatial Residential Sorting Framework

Mitchell R. Livy and H. Allen Klaiber

Abstract

This article investigates the role of spatial scale in recovering resident preferences and evaluating policy effects after changes in environmental amenities. As homeowners choose locations, different trade-offs occur across spatial scales, which jointly determine observed choices and equilibrium outcomes. To explore these trade-offs, we develop a multispatial residential location choice model at the school attendance boundary and the residential neighborhood levels that demonstrates the spatially varying influence of environmental amenities on location choice. Furthering this analysis, welfare simulations provide evidence that trade-offs interact across space in various ways to shape welfare implications and distributional outcomes arising from policy.

JEL

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