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Transport-Induced Agglomeration Effects: Evidence for US Metropolitan Areas

Patricia Melo () and Daniel J. Graham

No 2017/06, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa

Abstract: While the interaction between transport and agglomeration economies is widely accepted, there is insufficient research attempting at a direct empirical quantification. Using a balanced panel dataset for US metropolitan areas, we estimate a system of simultaneous equations to measure the indirect effect of urban agglomeration economies which arises through transport provision. Our findings suggest that public transit reinforces the effect of urban agglomeration, whereas road lane miles appearto weaken it. The results highlight the importance of public transit in supporting positive urban agglomeration externalities.

Keywords: Transport-induced agglomeration effects; productivity; system of simultaneous equations; metropolitan areas (search for similar items in EconPapers)
JEL-codes: R11 R12 R41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-tre and nep-ure
Date: 2017-10
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp0062017

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