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Cost-Benefit Analysis for Transport Projects in an Agglomeration Economy

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  • Yukihiro Kidokoro

Abstract

The progress of the new economic geography has elucidated the microfoundations of agglomeration. However, the best way of dealing with the effect of agglomeration in a cost-benefit analysis for individual transport projects is still uncertain. The purpose of this paper is to clarify how conventional cost-benefit analysis can incorporate the effect of agglomeration in models with the features of the new economic geography. We illustrate the departures from conventional cost-benefit analysis by decomposing the overall effects of transport investments into various forms, and we consider how to apply the results in practice. © 2015 LSE and the University of Bath

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  • Yukihiro Kidokoro, 2015. "Cost-Benefit Analysis for Transport Projects in an Agglomeration Economy," Journal of Transport Economics and Policy, University of Bath, vol. 49(3), pages 454-474, July.
    • Handle: RePEc:tpe:jtecpo:v:49:y:2015:i:3:p:454-474
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    Cited by:

    1. Jetpan Wetwitoo & Hironori Kato, 2017. "Inter-regional transportation and economic productivity: a case study of regional agglomeration economies in Japan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(2), pages 321-344, September.

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