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Capital Cities and Road Network Integration: Evidence from the U.S

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This paper quantifies the causal effect of capital status on road network integration of U.S.micro/metropolitan statistical areas. Road network integration is defined using a class of measurements that evaluate how well a location is connected to all other locations through the National Highway System (NHS).To tackle the non-random placement of capital cities, I instrument capital status using a k-means clustering algorithm that predicts the boundaries of 48 U.S. states and defines the geographical center as a hypothetical capital location. Overall, I find significant and robust evidence that capital cities are more directly integrated in the NHS than non-capital cities of similar characteristics. I discuss two possible mechanisms behind the capital premium: (i) the favorable geographical position of capital cities within their state and (ii) a political interest in connecting capital cities well to major urban areas around.

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  • Nicole Loumeau, 2021. "Capital Cities and Road Network Integration: Evidence from the U.S," KOF Working papers 21-498, KOF Swiss Economic Institute, ETH Zurich.
    • Handle: RePEc:kof:wpskof:21-498
    DOI: 10.3929/ethz-b-000516618
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    More about this item

    Keywords

    capital cities; transport infrastructure; market access; clustering algorithm;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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