In this paper we study the life cycle locational choices of heterogeneous households and characte... more In this paper we study the life cycle locational choices of heterogeneous households and characterize the dynamics of metropolitan areas. We develop an overlapping genera- tions model for households in of a system of multiple jurisdictions. At each point of time households choose among the finite number of jurisdictions, pick consumption and housing plans, and vote over education expenditures and tax policies. A household’s composition changes over the life cycle as children grow up and leave the household. These changes in turn impact the household’s need for housing and for local public ser- vices, particularly education. Households face frictions in relocating. A household may relocate as needs change, bearing the associated financial and psychic costs of moving. Alternatively, the household may choose to remain in a community that suited its initial needs, finding the costs of relocation to be greater than the potential benefits of moving to a community better suited to its chan...
In this paper we study the life cycle locational choices of heterogeneous households and characte... more In this paper we study the life cycle locational choices of heterogeneous households and characterize the dynamics of metropolitan areas. We develop an overlapping genera- tions model for households in of a system of multiple jurisdictions. At each point of time households choose among the finite number of jurisdictions, pick consumption and housing plans, and vote over education expenditures and tax policies. A household’s composition changes over the life cycle as children grow up and leave the household. These changes in turn impact the household’s need for housing and for local public ser- vices, particularly education. Households face frictions in relocating. A household may relocate as needs change, bearing the associated financial and psychic costs of moving. Alternatively, the household may choose to remain in a community that suited its initial needs, finding the costs of relocation to be greater than the potential benefits of moving to a community better suited to its chan...
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Papers by Dennis Epple