Urban agglomeration benefits from public transit improvements: Extending and implementing the Venables model

Tim Hazledine, Stuart Donovan and Christine Mak

Research in Transportation Economics, 2017, vol. 66, issue C, 36-45

Abstract: In the Venables model, commuting costs determine the size of the Central Business District (CBD) workforce and thus the productivity and wage premium generated by agglomeration economies in the CBD. Improvements in public transit modes increase numbers willing to commute to work in the CBD, and generate additional productivity gains. The resulting efficiencies can greatly exceed estimates of direct travel time savings from the PT innovation. The Venables model is operationalised and extended, and applied illustratively to two actual PT innovations in Auckland: improved bus lanes, and improved rail service.

Keywords: Venables model; Commuting; Commuting costs; Agglomeration economies; Urban wage premia; Public transit; Public transit innovations; Public transport; Public transport innovations (search for similar items in EconPapers)
JEL-codes: R12 R15 R41 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.retrec.2017.09.002

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