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Locating Public Facilities: Theory and Micro Evidence from Paris

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  • Gabriel Loumeau

Abstract

This paper proposes a novel approach to evaluate location decisions for public facilities. The approach addresses, not only the standard distance-minimizing problem, but also the endogenous location decisions of individuals. To do so, I develop a quantifiable general equilibrium model with endogenous (residential and commercial) densities, housing prices, commutes to work and public facilities, as well as public facility characteristics. The latter includes a facility’s location, quality, district and capacity. I apply the framework to secondary schools in Paris’ greater region at a 1km2 geographical scale. The analysis reveals that the observed location decisions made between 2001 and 2015 underestimate the endogenous reaction of individuals. A more decentralized strategy is predicted to increase welfare growth by 10 percentage points on average, mostly via shorter commutes and lower housing prices.

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  • Gabriel Loumeau, 2021. "Locating Public Facilities: Theory and Micro Evidence from Paris," CESifo Working Paper Series 8908, CESifo.
    • Handle: RePEc:ces:ceswps:_8908
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    3. Chiara Garau & Giulia Desogus & Mauro Coni, 2019. "Fostering and Planning a Smart Governance Strategy for Evaluating the Urban Polarities of the Sardinian Island (Italy)," Sustainability, MDPI, vol. 11(18), pages 1-24, September.

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    More about this item

    Keywords

    location; facility; general equilibrium; commuting; interrupted search;
    All these keywords.

    JEL classification:

    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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