Template-Type: ReDIF-Article 1.0 Author-Name: Huberto M. Ennis Author-Workplace-Name: Federal Reserve Bank of Richmond Author-Name: Santiago M. Pinto Author-Workplace-Name: West Virginia University Author-Name: Alberto Porto Author-Workplace-Name: National University of La Plata Title: Choosing a place to live and a workplace Abstract: We study how fiscal policies and commuting costs determine the geographical distribution of workers and households in an economy. We characterize equilibrium outcomes in a simple two-region model with commuting costs, local public goods, and local infrastructure. We also provide a short survey of the related economic literature that discusses other important factors driving the localization decisions of agents. Finally, we argue that the issues raise in this paper play a significant role in the geographic distribution of economic activity in the Greater Buenos Aires urban area of Argentina. Classification-JEL: J61, R12,H3, H41, H54, H7 Keywords: Commuting, local public goods, suburbanization, local infrastructure Journal: Económica Pages: 15-51 Volume: LII Issue: 1-2 Year: 2006 Month: January-December File-URL: https://revistas.unlp.edu.ar/Economica/article/view/5502/4514 File-Format: Application/pdf Handle: RePEc:akh:journl:547