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Does traffic congestion reduce employment growth?

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  • Hymel, Kent
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    Abstract

    This paper examines the impact of traffic congestion on employment growth in large U.S. metropolitan areas. An historic highway plan and political variables serve as instruments for endogenous congestion. The results show that high initial levels of congestion dampen subsequent employment growth. This finding suggests that increasing the efficiency of public infrastructure can spur local economies. Counterfactual estimates show that the employment-growth returns from modest capacity expansion or congestion pricing are substantial.

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    File URL: http://www.sciencedirect.com/science/article/B6WMG-4TYYNW5-1/2/f7cede74cb19e9bd7ae0b45b05abec35
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Urban Economics.

    Volume (Year): 65 (2009)
    Issue (Month): 2 (March)
    Pages: 127-135

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    Handle: RePEc:eee:juecon:v:65:y:2009:i:2:p:127-135

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    Web page: http://www.elsevier.com/locate/inca/622905

    Related research

    Keywords: Urban growth Congestion Transportation;

    References

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    1. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    2. Jesse M. Shapiro, 2006. "Smart Cities: Quality of Life, Productivity, and the Growth Effects of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 324-335, May.
    3. John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
    4. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    5. Rappaport, Jordan, 2007. "Moving to nice weather," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 375-398, May.
    6. Robert Cervero & Mark Hansen, 2002. "Induced Travel Demand and Induced Road Investment: A Simultaneous Equation Analysis," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 36(3), pages 469-490, September.
    7. Jinyong Hahn & Jerry Hausman & Guido Kuersteiner, 2004. "Estimation with weak instruments: Accuracy of higher-order bias and MSE approximations," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 272-306, 06.
    8. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
    9. Georgina Santos & Gordon Fraser, 2006. "Road pricing: lessons from London," Economic Policy, CEPR & CES & MSH, vol. 21(46), pages 263-310, 04.
    10. May, A. D. & Milne, D. S., 2000. "Effects of alternative road pricing systems on network performance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 34(6), pages 407-436, August.
    11. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
    12. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
    13. Noland, Robert B., 2001. "Relationships between highway capacity and induced vehicle travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(1), pages 47-72, January.
    14. repec:fth:stanho:e-95-4 is not listed on IDEAS
    15. Simon, Curtis J., 1998. "Human Capital and Metropolitan Employment Growth," Journal of Urban Economics, Elsevier, vol. 43(2), pages 223-243, March.
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    Citations

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    Cited by:
    1. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos, 2010. "Labour Supply and Commuting," IZA Discussion Papers 4798, Institute for the Study of Labor (IZA).
    2. Philippe Martin & Thierry Mayer & Florian Mayneris, 2011. "Spatial concentration and plant-level productivity in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
    3. Glaeser, Edward L. & Rosenthal, Stuart S. & Strange, William C., 2010. "Urban economics and entrepreneurship," Journal of Urban Economics, Elsevier, vol. 67(1), pages 1-14, January.
    4. Raffaello Bronzini & Piero Casadio & Giuseppe Marinelli, 2012. "What the Regional Transport Infrastructure Indicators Can and Cannot Tell Us," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    5. Fu, Shihe & Viard, Brian, 2014. "Commute Costs and Labor Supply: Evidence from a Satellite Campus," MPRA Paper 53740, University Library of Munich, Germany.
    6. World Bank, 2012. "Arab Republic of Egypt - Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform, Volume 1," World Bank Other Operational Studies 11903, The World Bank.
    7. Raimund Krumm & Harald Strotmann, 2013. "The impact of regional location factors on job creation, job destruction and employment growth in manufacturing," Jahrbuch für Regionalwissenschaft, Springer, vol. 33(1), pages 23-48, February.
    8. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.
    9. Ellen, Ingrid Gould & O'Regan, Katherine, 2010. "Crime and urban flight revisited: The effect of the 1990s drop in crime on cities," Journal of Urban Economics, Elsevier, vol. 68(3), pages 247-259, November.
    10. World Bank, 2012. "Reshaping Egypt's Economic Geography : Domestic Integration as a Development Platform," World Bank Other Operational Studies 11869, The World Bank.
    11. Marcelo Maciel & Luiz Rosa & Fernando Correa & Ursula Maruyama, 2012. "Energy, Pollutant Emissions and Other Negative Externality Savings from Curbing Individual Motorized Transportation (IMT): A Low Cost, Low Technology Scenario Analysis in Brazilian Urban Areas," Energies, MDPI, Open Access Journal, vol. 5(3), pages 835-861, March.
    12. Raimund Krumm & Harald Strotmann, 2010. "The Impact of Regional Supply and Demand Conditions on Job Creation and Destruction," IAW Discussion Papers 61, Institut für Angewandte Wirtschaftsforschung (IAW).
    13. Mark J. Kutzbach, 2010. "Access to Workers or Employers? An Intra-Urban Analysis of Plant Location Decisions," Working Papers 10-21r, Center for Economic Studies, U.S. Census Bureau, revised Sep 2012.

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