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Welfare Benefits of Agglomeration and Worker Heterogeneity

Author

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  • Coen Teulings

    (University of Cambridge, United Kingdom, University of Amsterdam, the Netherlands)

  • Ioulia Ossokina

    (CPB Netherlands Bureau for Economic Policy Analysis, the Netherlands)

  • Henri L.F. de Groot

    (VU University Amsterdam, the Netherlands)

Abstract

The direct impact of local public goods on welfare is relatively easy to measure from land rents. However, the indirect effects on home and job location, on land use, and on agglomeration benefits are hard to pin down. We develop a spatial general equilibrium model for the valuation of these effects. The model is estimated using data on transport infrastructure, commuting behavior, wages, land use and land rents for 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits are shown to differ sharply by workers' educational attainment.

Suggested Citation

  • Coen Teulings & Ioulia Ossokina & Henri L.F. de Groot, 2014. "Welfare Benefits of Agglomeration and Worker Heterogeneity," Tinbergen Institute Discussion Papers 14-101/VI, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20140101
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    Cited by:

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    2. Lukasz Rachel & Thomas Smith, 2015. "Secular Drivers of the Global Real Interest Rate," Discussion Papers 1605, Centre for Macroeconomics (CFM).
    3. Coen N. Teulings, 2016. "Secular Stagnation, Rational Bubbles, and Fiscal Policy," Cambridge Working Papers in Economics 1642, Faculty of Economics, University of Cambridge.
    4. Sander Hoogendoorn & Joost van Gemeren & Paul Verstraten & Kees Folmer, 2016. "House prices and accessibility: Evidence from a natural experiment in transport infrastructure," CPB Discussion Paper 322.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Sander Hoogendoorn & Joost van Gemeren & Paul Verstraten & Kees Folmer, 2016. "House prices and accessibility: Evidence from a natural experiment in transport infrastructure," CPB Discussion Paper 322, CPB Netherlands Bureau for Economic Policy Analysis.
    6. Teulings, Coen, 2016. "Secular stagnation, rational bubbles, and fiscal policy," LSE Research Online Documents on Economics 86220, London School of Economics and Political Science, LSE Library.
    7. Victor Couture & Jessie Handbury, 2017. "Urban Revival in America, 2000 to 2010," NBER Working Papers 24084, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    local public goods; agglomeration; spatial equilibrium; residential sorting; land rents;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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