Valuing Local Social Amenities through a Spatial Lens: Comprehensive Wealth Measurement in U.S. Metro and Non-Metro Counties | Chapter 1 | New Advances in Business, Management and Economics Vol. 9

 

This study reinterprets Roback’s general spatial equilibrium model within the comprehensive wealth framework to better estimate the contribution of local amenities, natural, built, social, cultural, and human capital residents’ wealth. Using data from 3,109 U.S. counties, spatial econometric models (including spatial error models, SEM) are developed and applied that capture cross-county spillover effects across borders. The findings reveal that property values often reflect rising demand for local amenities rather than limited housing supply, suggesting new strategies for property and income taxation. By differentiating between metro and non-metro counties, this study uncovers divergent policy implications: results suggest potential overprovision of services in metro areas while highlighting underprovision in non-metro regions. These refined insights into the determinants of local wealth and wage variation support more effective place-based policy and investment decisions.

 

Author(s) Details

Jinhyoung Kim
HK+ National Strategies Research Project Agency, Center for International Area Studies, Hankuk University of Foreign Studies-Seoul, 107, Imun-ro, Dongdaemun-gu, Seoul 02450, Republic of Korea.

 

Thomas G. Johnson
Department of Applied Economics, University of Missouri-Columbia, Columbia, MO 65211, USA.

 

Please see the book here:- https://doi.org/10.9734/bpi/nabme/v9/5729