@TechReport{iza:izadps:dp17549,
            	author={Ahlfeldt, Gabriel M. and Bald, Fabian and Roth, Duncan H.W. and Seidel, Tobias},
            	title={Measuring Quality of Life Under Spatial Frictions},
            	year={2024},
	month={Dec},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17549},
            	url={https://www.iza.org/index.php/publications/dp17549},
	abstract={Using a quantitative spatial model as a data-generating process, we explore how spatial frictions affect the measurement of quality of life. We find that under a canonical parameterization, mobility frictions - generated by idiosyncratic tastes and local ties - dominate trade frictions - generated by trade costs and non-tradable services - as a source of measurement error in the Rosen-Roback framework. This non-classical measurement error leads to a downward bias in estimates of the urban quality-of-life premium. Our application to Germany reveals that accounting for spatial frictions results in larger quality-of-life differences, different quality-of-life rankings, and an urban quality-of-life premium that exceeds the urban wage premium.},
	keywords={housing;spatial frictions;rents;prices;productivity;quality of life;spatial equilibrium;wages},
            }