Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2014-08-05
Number: 14-101/VI
Author-Name: Coen Teulings
Author-Workplace-Name: University of Cambridge, United Kingdom, University of Amsterdam, the Netherlands
Author-Name: Ioulia Ossokina
Author-Workplace-Name: CPB Netherlands Bureau for Economic Policy Analysis, the Netherlands
Author-Name: Henri L.F. de Groot
Author-Workplace-Name: VU University Amsterdam, the Netherlands
Title: Welfare Benefits of Agglomeration and Worker Heterogeneity
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.
Classification-JEL: H4, H54, R13, R23, R4
Keywords: local public goods, agglomeration, spatial equilibrium, residential sorting, land rents
File-Url: https://papers.tinbergen.nl/14101.pdf
File-Format: application/pdf
File-Size: 3360977 bytes
Handle: RePEc:tin:wpaper:20140101