EconPapers    
Economics at your fingertips  
 

Transport Infrastructure, Spatial General Equilibrium and Welfare

Jose Carlos Melendez-Hidalgo (), Piet Rietveld and Erik Verhoef ()

ERSA conference papers from European Regional Science Association

Abstract: Large-scale investments in transport infrastructure have been traditionally evaluated assuming the equivalence between direct and indirect economic effects (Jara-Diaz,1986), which is only correct under -generally non-guaranteed- perfect competition assumptions. Despite this common practice there is still no consensus amongst economists as to how the benefits and costs of large infrastructure projects should be determined. The discussions regarding the desirability, for instance, of the Betuwe railway line, the fifth runway at Schiphol Airport, the North-South underground railway in Amsterdam etc. are illustrative of this. The focus has been, in particular, on the magnitude of ‘indirect’ and ‘strategic’ effects, that is effects on parties other than the direct users of the infrastructure (indirect effects) and those factors that have a favorable effect on the long-term development of the (regional) economy, such as effects relating to firm location and demographics (strategic effects). Focusing on general equilibrium, increasing returns and imperfect competition modeling approach this paper aims to throw light on this subject matter by examining how the social benefits in terms of efficiency resulting from improvements to the infrastructure can be determined in an imperfect regional economy.

New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
Date: 2004-08
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www-sre.wu.ac.at/ersa/ersaconfs/ersa04/PDF/426.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa04p426

Access Statistics for this paper

More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().

 
Page updated 2019-04-19
Handle: RePEc:wiw:wiwrsa:ersa04p426