Full Citation
Title: Commuting, Labor, and Housing Market Effects of Mass Transportation: Welfare and Identification
Citation Type: Working Paper
Publication Year: 2019
ISBN:
ISSN: 1962-5361
DOI: 10.21799/frbp.wp.2018.14
NSFID:
PMCID:
PMID:
Abstract: Using a panel of tract-level bilateral commuting flows, I estimate the causal effect of Los Ange-les Metro Rail on commuting between connected locations. Unique data, in conjunction with a spatial general equilibrium model, isolate commuting benefits from other channels. A novel strategy interacts local innovations with intraurban geography to identify all model parameters (local housing and labor elasticities). Metro Rail connections increase commuting between locations containing (adjacent to) stations by 15% (10%), relative to control routes selected using proposed and historical rail networks. Other margins are not affected. Elasticity estimates suggest relatively inelastic mobility and housing supply. Metro Rail increases welfare $146 million annually by 2000, less than both operational subsidies and the annual cost of capital. More recent data show some additional commuting growth.
User Submitted?: No
Authors: Severen, Christopher
Series Title: Philadelphia Fed working paper
Publication Number: 18-14
Institution: Federal Reserve Bank of Philadelphia
Pages:
Publisher Location: Philadelphia, Pennsylvania
Data Collections: IPUMS USA
Topics: Housing and Segregation, Labor Force and Occupational Structure, Other
Countries: