Welfare benefits of agglomeration and worker heterogenity

Open Access
Authors
Publication date 2014
Series Tinbergen Institute Discussion Papers, 2014-101/VI
Number of pages 38
Publisher Amsterdam/Rotterdam: Tinbergen Institute
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract The direct impact of local public goods on welfare is relatively easy to measure from land rents. However, the indirect effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial general equilibrium model for the valuation of these effects. The model is estimated using data on transport infrastructure, commuting behavior, wages, land use and land rents for 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits are shown to differ sharply by workers' educational attainment.
Document type Working paper
Note August 4, 2014
Language English
Published at http://papers.tinbergen.nl/14101.pdf
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