Discussion Paper Details

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Title: Urban Growth and Transportation

Author(s): Gilles Duranton and Matthew A Turner

Publication Date: January 2008

Keyword(s): instrumental variables, public transport, transportation and urban growth

Programme Area(s): International Trade and Regional Economics

Abstract: We estimate the effects of major roads and public transit on the growth of major cities in the US between 1980 and 2000. We find that a 10% increase in a city?s stock of roads causes about a 2% increase in its population and employment and a small decrease in its share of poor households over this 20 year period. We also find that a 10% increase in a city?s stock of large buses causes about a 0.8% population increase and a small increase in the share of poor households over this period. To estimate these effects we rely on an instrumental variables estimation which uses a 1947 plan of the interstate highway system and an 1898 map of railroads as instruments for 1980 roads.

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Bibliographic Reference

Duranton, G and Turner, M. 2008. 'Urban Growth and Transportation'. London, Centre for Economic Policy Research.