Land use, worker heterogeneity and welfare benefits of public goods

C.N. Teulings, I.V. Ossokina, H.L.F. de Groot

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3 Citations (Scopus)
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Abstract

We show that investments in public goods change the optimal land use in their vicinity, leading to additional welfare benefits. This occurs through two sorting mechanisms. First, availability of public goods leads to higher population densities. Second, population groups sort according to their preferences for public goods. We develop a structural spatial general equilibrium model that accounts for these effects. The model is estimated using data on transport infrastructure, commuting behaviour, land use and land rents for some 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits of investments in public transport infrastructure are shown to differ sharply by workers’ educational attainment. Welfare gains from changes in land use account for up to 30% of the total benefits of a transport investment.
Original languageEnglish
Pages (from-to)67-82
JournalJournal of Urban Economics
Volume103
DOIs
Publication statusPublished - 2018

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land use
welfare
worker
infrastructure
educational attainment
commuting
population group
public transport
equilibrium model
population density
level of education
rent
sorting
Netherlands
Welfare benefits
Land use
Worker heterogeneity
Transport infrastructure
code
effect

Cite this

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title = "Land use, worker heterogeneity and welfare benefits of public goods",
abstract = "We show that investments in public goods change the optimal land use in their vicinity, leading to additional welfare benefits. This occurs through two sorting mechanisms. First, availability of public goods leads to higher population densities. Second, population groups sort according to their preferences for public goods. We develop a structural spatial general equilibrium model that accounts for these effects. The model is estimated using data on transport infrastructure, commuting behaviour, land use and land rents for some 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits of investments in public transport infrastructure are shown to differ sharply by workers’ educational attainment. Welfare gains from changes in land use account for up to 30{\%} of the total benefits of a transport investment.",
author = "C.N. Teulings and I.V. Ossokina and {de Groot}, H.L.F.",
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Land use, worker heterogeneity and welfare benefits of public goods. / Teulings, C.N.; Ossokina, I.V.; de Groot, H.L.F.

In: Journal of Urban Economics, Vol. 103, 2018, p. 67-82.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Land use, worker heterogeneity and welfare benefits of public goods

AU - Teulings, C.N.

AU - Ossokina, I.V.

AU - de Groot, H.L.F.

PY - 2018

Y1 - 2018

N2 - We show that investments in public goods change the optimal land use in their vicinity, leading to additional welfare benefits. This occurs through two sorting mechanisms. First, availability of public goods leads to higher population densities. Second, population groups sort according to their preferences for public goods. We develop a structural spatial general equilibrium model that accounts for these effects. The model is estimated using data on transport infrastructure, commuting behaviour, land use and land rents for some 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits of investments in public transport infrastructure are shown to differ sharply by workers’ educational attainment. Welfare gains from changes in land use account for up to 30% of the total benefits of a transport investment.

AB - We show that investments in public goods change the optimal land use in their vicinity, leading to additional welfare benefits. This occurs through two sorting mechanisms. First, availability of public goods leads to higher population densities. Second, population groups sort according to their preferences for public goods. We develop a structural spatial general equilibrium model that accounts for these effects. The model is estimated using data on transport infrastructure, commuting behaviour, land use and land rents for some 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits of investments in public transport infrastructure are shown to differ sharply by workers’ educational attainment. Welfare gains from changes in land use account for up to 30% of the total benefits of a transport investment.

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DO - 10.1016/j.jue.2017.10.004

M3 - Article

VL - 103

SP - 67

EP - 82

JO - Journal of Urban Economics

JF - Journal of Urban Economics

SN - 0094-1190

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