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The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System

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  • Haddad, Eduardo A.
  • Hewings, Geoffrey J.D.
  • Porsse, Alexandre A.
  • Van Leeuwen, Eveline S.
  • Vieira, Renato S.

Abstract

Over one million workers commute daily to São Paulo City center, using different modes of transportation. The São Paulo subway network reaches 74.2km of length and is involved in around 20% of the commuting trips by public transportation, enhancing mobility and productivity of workers. This paper uses an integrated framework to assess the higher-order economic impacts of the existing underground metro infrastructure. We consider links between mobility, accessibility and labor productivity in the context of a detailed metropolitan system embedded in the national economy. Simulation results from a spatial computable general equilibrium model integrated to a transportation model suggest positive economic impacts that go beyond the city limits. While 32% of the impacts accrue to the city of São Paulo, the remaining 68% benefit other municipalities in the metropolitan area (11%), in the State of São Paulo (12.0%) and in the rest of the country (45%).

Suggested Citation

  • Haddad, Eduardo A. & Hewings, Geoffrey J.D. & Porsse, Alexandre A. & Van Leeuwen, Eveline S. & Vieira, Renato S., 2015. "The underground economy: Tracking the higher-order economic impacts of the São Paulo Subway System," Transportation Research Part A: Policy and Practice, Elsevier, vol. 73(C), pages 18-30.
  • Handle: RePEc:eee:transa:v:73:y:2015:i:c:p:18-30
    DOI: 10.1016/j.tra.2014.12.011
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    References listed on IDEAS

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    Cited by:

    1. Zheng, Siqi & Hu, Xiaoke & Wang, Jianghao & Wang, Rui, 2016. "Subways near the subway: Rail transit and neighborhood catering businesses in Beijing," Transport Policy, Elsevier, vol. 51(C), pages 81-92.
    2. Eduardo A. Haddad & Ana Maria Bonomia Barufi, 2016. "From Rivers to Roads: Spatial Mismatch and Inequality of Opportunity in Urban Labor Markets of a Megacity," Working Papers, Department of Economics 2016_40, University of São Paulo (FEA-USP).
    3. Eduardo Amaral Haddad & Ana Maria Bonomi Barufi, 2018. "From Rivers To Roads: Spatial Mismatch And Inequality Of Opportunity In Urban Labor Markets Of A Megacity," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 158, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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