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Transit Infrastructure and Informal Housing: Assessing an Expansion of the Medellin's Metrocable System

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  • Posada, H
  • García-Suaza, A

Abstract

Transportation policies have an important incidence on the allocation of resources within cities. Therefore, investigating the impacts of transit investment is relevant especially in developing countries where informal housing is highly prevalent and spatial disparities are remarkable. We study the impact of a transit expansion of the Metrocable system in Medellín (Colombia) as a natural scenario to understand the causal links between lowering access cost and informal housing. Using a difference-in-difference identification strategy, we estimate that the expasion of Line H of Metrocable reduces informal housing up to 15 percentage points. We also show that the magnitude of the effect depends on the distance to the intervention. When exploring potential mechanisms mediating the analyzed causal relation we find that the labor market plays a crucial role.

Suggested Citation

  • Posada, H & García-Suaza, A, 2021. "Transit Infrastructure and Informal Housing: Assessing an Expansion of the Medellin's Metrocable System," Documentos de trabajo - Alianza EFI 19289, Alianza EFI.
    • Handle: RePEc:col:000561:019289
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    More about this item

    Keywords

    Informal housing; Transportation cost; Land value; Informal labormarket; Colombia;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market

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