Infrastructure's Imprint: Metro Proximity and Property Development Dynamics in São Paulo, Brazil

Daniel Grimaldi (), Oscar A. Mitnik () and Beatrice Zimmermann ()
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Daniel Grimaldi: George Mason University
Oscar A. Mitnik: Inter-American Development Bank
Beatrice Zimmermann: Inter-American Development Bank

No 17414, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: How does the proximity to a metro station affect urban development in Latin America? While the literature assessing the causal impacts of transportation infrastructure has grown in recent years, only a few papers have focused on the effects of metro systems in Latin America and the Caribbean (LAC) region, and identifying the precise impacts of such investments is far from straightforward. We apply a Synthetic Difference-in-Differences (SDiD) approach to estimate the effects of the expansion of Line 5 of the São Paulo metro system in Brazil on land use and property features. Our results show positive impacts on constructed area, with a treatment effect that is half the magnitude of the average constructed area in untreated units in the pre-treatment period. Additionally, our findings indicate an increase in the number of properties around the stations, with a shift in property composition towards more commercial units. We also find a strong anticipation effect associated with the new metro infrastructure and dynamic impacts after the opening of the first metro station, with effects that increase over time.

Keywords: land use; infrastructure investments; impact evaluation (search for similar items in EconPapers)
JEL-codes: R14 R40 R42 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2024-10
New Economics Papers: this item is included in nep-lam, nep-tre and nep-ure
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