Valuing Local Social Amenities through a Spatial Lens: Comprehensive Wealth Measurement in U.S. Metro and Non-Metro Counties
Jinhyoung Kim *
HK+ National Strategies Research Project Agency, Center for International Area Studies, Hankuk University of Foreign Studies-Seoul, 107, Imun-ro, Dongdaemun-gu, Seoul 02450, Republic of Korea.
Thomas G. Johnson
Department of Applied Economics, University of Missouri-Columbia, Columbia, MO 65211, USA.
*Author to whom correspondence should be addressed.
Abstract
This study reinterprets Roback’s general spatial equilibrium model within the comprehensive wealth framework to better estimate the contribution of local amenities, natural, built, social, cultural, and human capital residents’ wealth. Using data from 3,109 U.S. counties, spatial econometric models (including spatial error models, SEM) are developed and applied that capture cross-county spillover effects across borders. The findings reveal that property values often reflect rising demand for local amenities rather than limited housing supply, suggesting new strategies for property and income taxation. By differentiating between metro and non-metro counties, this study uncovers divergent policy implications: results suggest potential overprovision of services in metro areas while highlighting underprovision in non-metro regions. These refined insights into the determinants of local wealth and wage variation support more effective place-based policy and investment decisions.
Keywords: Comprehensive wealth, spatial equilibrium model, metro and non-metro regions, spatial interaction, place-based intangible assets, housing affordability