Nuremberg Research Seminar in Economics on 5 June 2024, LG 0.423

Symbolic picture for the article. The link opens the image in a large view.

You are invited to join the weekly Nuremberg Research Seminar in Economics on 5 June 2024, from 13.15 to 14.45 pm. The seminar will be held in room LG 0.423. Peter Egger (EH Zurich) will be talking about „How Aggregate Uncertainty Shapes the Spatial Economy”.

More information can be found here:

This paper develops a dynamic spatial general equilibrium model of a multi-region multi-sector open economy where heterogeneous agents choose optimally their job, making forward-looking decisions under aggregate uncertainty. We solve the system of individual dynamic optimal-control problems under rational expectations as a Mean Field Game, in discrete time and state space, preserving the full non-linear structure of the problem. With a calibration for France, we demonstrate that households behave substantially differently between uncertainty and perfect foresight. Uncertainty alters the patterns of labor reallocation in transition as well as in the long run.