Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300049 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11121
Publisher: 
CESifo GmbH, Munich
Abstract: 
This paper analyzes the urban impacts of hybrid WFH in the simplest possible model, relying on Leontief utility and production functions and other simplifying assumptions. The analysis shows that introduction of WFH raises both the wage and land consumption of households while shrinking the size of the business district and reducing business land rent. When WFH requires home work-space, the city's overall spatial size increases, with residential rents rising in the suburbs while falling near the center. The decline in business rent and the rotation of the residential rent contour match empirical evidence showing that WFH reduces office-building values and flattens the residential rent gradient.
Subjects: 
work from home
cities
commuting
land rents
productivity
JEL: 
R14
R31
J01
Document Type: 
Working Paper
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