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A large part of this is about housing and taxes: https://www.aeaweb.org/articles?id=10.1257/mac.20170388 https://www.aeaweb.org/articles?id=10.1257/mac.20170388
by jseliger 4y ago
A large part of this is about housing and taxes: https://www.aeaweb.org/articles?id=10.1257/mac.20170388 https://www.aeaweb.org/articles?id=10.1257/mac.20170388
HCOL areas are also usually the most productive.
- paulmd 4y agoIn fact it's not a coincidence - economically productive areas are desirable to live. Everyone likes living in a thriving economy, and salaries are higher. HCOL isn't a bad thing in the abstract, there is no abstract "right" set point for cost-of-living, and you could equally view LCOL areas as generally being rural/underdeveloped areas that are underpriced relative to the broader economy.
- ouid 4y agoHCOL is the law of rents catching up. If your right to exist in a place can be captured, then it will eventually cost you your entire productive output.