%0 Report
        %A Stark, Oded
%A Budzinski, Wiktor
%A Kosiorowski, Grzegorz
        %T The Pure Effect of Social Preferences on Regional Location  Choices: The Evolving Dynamics of Convergence to a Steady State Population Distribution
        %D 2019
        %8 2019 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 12331
        %U https://www.iza.org/index.php/publications/dp12331
        %X This paper tracks the consequences of individuals' desire to align their location with their social preferences. The social preference studied in the paper is distaste for relative deprivation, measured in a cardinal manner. Location is conceived as social space, with individuals choosing to relocate if, as a result, their relative deprivation will be reduced, holding their incomes constant. 
Conditions are provided under which the associated dynamics reaches a spatial steady state, the number of periods it takes to reach a steady state is specified, and light is shed on the robustness of the steady state outcome. By way of simulation it is shown that for large populations, a steady state of the relocation dynamics is almost always reached, typically in one period, and that cycles are more likely to occur when the populations' income distributions are more equal.
        %K social preferences
%K distaste for low relative income
%K a cardinal measure of income relative deprivation
%K interregional locational choices
%K steady-state spatial distribution
%K relocation dynamics