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Urban growth and transportation

  • Gilles Duranton
  • Matthew A. Turner

We estimate the effects of major roads and public transit on the growth of major cities in the US between 1980 and 2000. We find that a 10% increase in a city’s stock of roads causes about a 2% increase in its population and employment and a small decrease in its share of poor households over this 20 year period. We also find that a 10% increase in a city’s stock of large buses causes about a 0.8% population increase and a small increase in the share of poor households over this period. To estimate these effects we rely on an instrumental variables estimation which uses a 1947 plan of the interstate highway system and an 1898 map of railroads as instruments for 1980 roads.

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File URL: http://www.economics.utoronto.ca/public/workingPapers/tecipa-305.pdf
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Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-305.

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Length: 41 pages
Date of creation: 19 Dec 2007
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-305
Contact details of provider: Postal: 150 St. George Street, Toronto, Ontario
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  30. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
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