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The Impacts of Urban Public Transportation: Evidence from the Paris Region

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  • Mayer, Thierry
  • Trevien, Corentin

Abstract

Evaluating the impact of transport infrastructure meets a major challenge since rail lines are not randomly located. We use the natural experiment offered by the opening and progressive extension of the Regional Express Rail (RER) between 1970 and 2000 in the Paris metropolitan region, and in particular the deviation from original plans due to budgetary constraints and technical reasons, in order to identify the causal impact of urban rail transport on firm location, employment and population growth. We use a difference-in-differences approach on a specific subsample, selected to avoid endogeneity bias which occurs when evaluating transportation effects. We find that the increase in employment is 12.8\% higher in municipalities connected to the new network compared to the existing suburban rail network between 1975 and 1990. Places located within 20 km from Paris are the only affected. While we find no effect on overall population growth, our results suggest that the commissioning of the RER may have increased the competition for land high-skilled households are more likely to locate in the vicinity of a RER station.

Suggested Citation

  • Mayer, Thierry & Trevien, Corentin, 2015. "The Impacts of Urban Public Transportation: Evidence from the Paris Region," CEPR Discussion Papers 10494, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10494
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Garcia-López, Miquel-Àngel & Hémet, Camille & Viladecans-Marsal, Elisabet, 2017. "Next train to the polycentric city: The effect of railroads on subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 50-63.
    2. Stephan Fretz & Raphaël Parchet & Frédéric Robert-Nicoud, 2017. "Highways, Market Access and Spatial Sorting," SERC Discussion Papers 0227, Spatial Economics Research Centre, LSE.
    3. Bastani, Spencer & Giebe, Thomas & Miao, Chizheng, 2019. "Ethnicity and tax filing behavior," MPRA Paper 97047, University Library of Munich, Germany.
    4. repec:eee:trapol:v:66:y:2018:i:c:p:116-126 is not listed on IDEAS
    5. repec:eee:regeco:v:73:y:2018:i:c:p:237-250 is not listed on IDEAS
    6. Claudia N. Berg & Uwe Deichmann & Yishen Liu & Harris Selod, 2017. "Transport Policies and Development," Journal of Development Studies, Taylor & Francis Journals, vol. 53(4), pages 465-480, April.
    7. Braun, Sebastian Till & Franke, Richard, 2019. "Railways, Growth, and Industrialisation in a Developing German Economy, 1829-1910," MPRA Paper 93644, University Library of Munich, Germany.
    8. Arnon Barak, 2019. "The Effect of Public Transit on Employment in Israel's Arab Society," Bank of Israel Working Papers 2019.03, Bank of Israel.
    9. repec:eee:jeeman:v:88:y:2018:i:c:p:447-467 is not listed on IDEAS

    More about this item

    Keywords

    impact evaluation; location choice; transport infrastructure; urban structure;

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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