City relocation and potential wealth loss: A method of measurement and an empirical test
2013 (English)Conference paper, Presentation (Other academic)
While physical city re-location is relatively uncommon, the economic center of a citymight shift over time, sometimes over a short period of time. Commonly thishappens when large retail centers are constructed in proximity to the city. It can alsobe the case that cities subject to frequent natural disasters choose to re-locate to“safer” areas. Regardless of the reason, this paper argues that the property marketwill see both winners and losers in terms of changes in distance to the city center.The aim of this paper is to develop a measure allowing for quantification of the gainsand losses of such a re-location, these will help determine if the re-location isKaldor-Hicks efficient. Further, the usefulness of this measure will be illustratedusing Kiruna as an example. Kiruna is threatened by ground movements due to themining industry and a decision has been made to re-locate. The empirical resultssuggest that for the particular case of Kiruna, the re-location will result in aggregate gains larger than aggregate losses.
Place, publisher, year, edition, pages
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-143509OAI: oai:DiVA.org:kth-143509DiVA: diva2:706797
Western Regional Science Association
QC 201406242014-03-212014-03-212014-06-24Bibliographically approved