Dear colleagues, The Department of Economics cordially invites you to the WU Research Seminar in Economics on Wednesday, May 20th, with Peter Egger (Prof. Dr. Peter Egger | ETH Zurich<https://kof.ethz.ch/en/the-institute/people/person-detail.MTY2NTM0.TGlzdC8xNDI4LDg0ODkwMDk4.html>) presenting: "How Aggregate Uncertainty Shapes the Spatial Economy". Abstract: This paper develops a dynamic spatial equilibrium model of a multi-region, multi-sector open economy where heterogeneous agents optimally choose their job, making forward-looking decisions under aggregate uncertainty. We propose a solution of 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 nonlinear structure of the problem. Using a calibration for France, we demonstrate that welfare outcomes and the spatial distribution of labor differ systematically from those under perfect foresight. Accounting for decisions made under aggregate uncertainty significantly reshapes the patterns of labor reallocation, both during transitions and in the long run. * Date: Wednesday, May 20th * Time: 4.30 to 6 pm (CET) * Location: building D4, entrance A, ground floor, D4.0.144<https://campus.wu.ac.at/?q=D4.0.144> With best regards, Harald Oberhofer --- Univ.-Prof. Dr. Harald Oberhofer Department of Economics WU Vienna University of Economics and Business Phone: +43/1/31336-4984 Email: harald.oberhofer@wu.ac.at<mailto:harald.oberhofer@wu.ac.at> https://www.wu.ac.at/en/economics/people/oberhofer-h Austrian Institute of Economic Research (WIFO) Phone: +43/1/7982601-468 Email: harald.oberhofer@wifo.ac.at<mailto:harald.oberhofer@wifo.ac.at> http://www.wifo.ac.at/harald_oberhofer