Highways, Market Access, and Spatial Sorting

2021 ◽  
Author(s):  
Stephan Fretz ◽  
Raphaël Parchet ◽  
Frédéric Robert-Nicoud
Keyword(s):  
Urban Sprawl ◽  
Low Income ◽  
Equilibrium Model ◽  
Market Access ◽  
Spatial Equilibrium ◽  
Spatial Equilibrium Model ◽  
Spatial Sorting ◽  
Highway Network ◽  
Income Taxpayers

Abstract We design a parsimonious spatial equilibrium model featuring workers embodied with heterogeneous skills and non-homothetic preferences. In equilibrium, locations with improved commuting access become relatively more attractive to high-income earners. We empirically analyse the effects of the construction of the Swiss highway network between 1960 and 2010 on the population size and composition of municipalities. We find that the advent of a new highway access led to a long-term 24% increase in the share of top-income taxpayers and a 8% decrease in the share of low-income taxpayers, impacting segregation by income. Highways also contributed to job and residential urban sprawl.

Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters

2021 ◽  
pp. 1-46
Author(s):  
Jingting Fan ◽  
Yi Lu ◽  
Wenlan Luo
Keyword(s):  
Equilibrium Model ◽  
Route Choice ◽  
Transport Infrastructure ◽  
Spatial Equilibrium ◽  
Transport Costs ◽  
Welfare Gains ◽  
Domestic Trade ◽  
Spatial Equilibrium Model ◽  
Expressway Construction ◽  
Quantitative Evaluations

Abstract A key input to quantitative evaluations of transport infrastructure projects is their impact on transport costs. We propose a new method of estimating this impact relying on widely accessible customs data: by using the route choice of exporters. We combine our method with a spatial equilibrium model to study the effects of the massive expressway construction in China between 1999 and 2010. We find transport costs are 20% lower on expressways than on regular roads. The expressways construction increases aggregate exports by 10% and domestic trade by 14%. It generates 5.1% welfare gains, implying a 150% net return to investment.

scholarly journals Assessment of model validation outcomes of a new recursive spatial equilibrium model for the Greater Beijing

2017 ◽  
Vol 46 (5) ◽  
pp. 805-825 ◽  
Author(s):  
Li Wan ◽  
Ying Jin
Keyword(s):  
Model Validation ◽  
Equilibrium Model ◽  
Expert Assessment ◽  
Model Parameters ◽  
Multiple Time ◽  
Spatial Equilibrium ◽  
Beijing City ◽  
Spatial Equilibrium Model ◽  
Recursive Equilibrium ◽  
Validation Strategy

Robust calibration and validation of applied urban models are prerequisites for their successful, policy-cogent use. This is particularly important today when expert assessment is questioned and closely scrutinized. This paper proposes a new model calibration-validation strategy based on a spatial equilibrium model that incorporates multiple time horizons, such that the predictive capabilities of the model can be empirically tested. The model is implemented for the Greater Beijing city region and the model validation strategy is demonstrated over the Census years 2000 to 2010. Through forward/backward forecasting, the model validation helps to verify the stability of the model parameters as well as the predictive capabilities of the recursive equilibrium framework. The proposed modelling strategy sets a new standard for verifying and validating recursive equilibrium models. We also consider the wider implications of the approach.

States of Urban Spatial Structure

1979 ◽  
Vol 11 (1) ◽  
pp. 23-34 ◽  
Author(s):  
G I Thrall
Keyword(s):  
Spatial Structure ◽  
Equilibrium Model ◽  
Urban Fringe ◽  
Urban Spatial Structure ◽  
Spatial Equilibrium ◽  
Numerical Illustration ◽  
Spatial Equilibrium Model ◽  
Two Factors ◽  
Public Economy ◽  
The City

A spatial-equilibrium model of a local public economy is developed in four settings. Each setting is distinguished by two factors: whether the city is ‘open’ or ‘closed’, and the method used to determine the urban fringe. The four settings are contrasted by use of a numerical illustration.

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