Urban Growth and Transportation

We estimate the effects of interstate highways on the growth of U.S. cities between 1983 and 2003. We find that a 10% increase in a city's initial stock of highways causes about a 1·5% increase in its employment over this 20 year period. To estimate a structural model of urban growth and transp...

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Bibliographic Details
Published in:The Review of economic studies 2012-10, Vol.79 (4), p.1407-1440
Main Authors: DURANTON, GILLES, TURNER, MATTHEW A.
Format: Article
Language:English
Subjects:
Cities
Coefficients
Economic models
Employment
Highways
Interstate highways
Population growth
Railway systems
Roads
Roads & highways
Studies
Transportation
Urban development
Urban growth
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Summary:We estimate the effects of interstate highways on the growth of U.S. cities between 1983 and 2003. We find that a 10% increase in a city's initial stock of highways causes about a 1·5% increase in its employment over this 20 year period. To estimate a structural model of urban growth and transportation, we rely on an instrumental variables estimation that uses a 1947 plan of the interstate highway system, an 1898 map of railroads, and maps of the early explorations of the U.S. as instruments for 1983 highways.
ISSN:0034-6527
1467-937X
DOI:10.1093/restud/rds010