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Welfare Benefits of Agglomeration and Worker Heterogeneity

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

No 10216, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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: agglomeration; land rates; local public goods; residential sorting; spatial equilibrium (search for similar items in EconPapers)
JEL-codes: H4 H54 R13 R23 R4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo and nep-ure
Date: 2014-10
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Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014) Downloads
Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014) Downloads
Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014) Downloads
Working Paper: Welfare Benefits of Agglomeration and Worker Heterogeneity (2014) Downloads
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