Welfare Benefits of Agglomeration and Worker Heterogeneity

C. N. Teulings (), Ioulia Ossokina and Henri de Groot

No 8382, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: local public goods; agglomeration; spatial equilibrium; residential sorting; land rents (search for similar items in EconPapers)
JEL-codes: H4 H54 R13 R23 R4 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-08
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014)
Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014)
Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014)
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