TY  - JOUR
AU  - Epple,Dennis
AU  - Sieg,Holger
TI  - Estimating Equilibrium Models of Local Jurisdictions
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6822
PY  - 1998
Y2  - December 1998
UR  - http://www.nber.org/papers/w6822
L1  - http://www.nber.org/papers/w6822.pdf
N1  - Author contact info:
Dennis N. Epple
Tepper School of Business
Carnegie Mellon University
Posner Hall, Room 257B
Pittsburgh, PA  15213
Tel: 412/268-1536
Fax: 412/268-7357
E-Mail: epple@cmu.edu

Holger Sieg
Department of Economics
University of Pennsylvania
3718 Locust Walk
Philadelphia, PA 19104
Tel: 215 898 7194
Fax: 215-573-2057
E-Mail: holgers@econ.upenn.edu
AB  - Research over the past several years has led to development of models characterizing equilibrium in a system of local jurisdictions.  An important insight from these models is that plausible single-crossing assumptions about preferences generate strong predictions about the equilibrium distribution of households across communities.  To date predictions have not been subjected to formal empirical tests.  The purpose of this paper is to provide an integrated approach for testing predictions from this class of models.  We first test conditions for locational equilibrium implied by these models.  In particular about the distribution of households by income across communities. We then test the models predictions about the relationships among locational equilibrium conditions and housing prices.  By drawing inferences from a structural general equilibrium model approach of this paper offers a unified treatment of theory and empirical testing.
ER  -