Cost-benefit analysis of transport improvements in the presence of spillovers, matching and an income tax
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Cost-benefit analysis of transport improvements in the presence of spillovers, matching and an income tax. / Eliasson, Jonas; Fosgerau, Mogens.
I: Economics of Transportation, Bind 18, 06.2019, s. 1-9.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Cost-benefit analysis of transport improvements in the presence of spillovers, matching and an income tax
AU - Eliasson, Jonas
AU - Fosgerau, Mogens
PY - 2019/6
Y1 - 2019/6
N2 - This paper addresses the problem of measuring the welfare benefits of a transport improvement. We formulate and analyze a rich spatial model that allows for spillovers, matching and income tax, in a setting with multiple work and residential locations and very general worker heterogeneity. The conventional consumer surplus captures part of the benefits and is calculated based on predictions of changes in travel demand and transport costs. The issue is to determine which so-called wider impacts to add to this. We find that adding the change in total output as a wider impact leads to double-counting of benefits. The output change due to spillovers should be added, while the output change due to matching is already partly included in the consumer surplus. These results are useful for applied cost-benefit analysis of transport policies.
AB - This paper addresses the problem of measuring the welfare benefits of a transport improvement. We formulate and analyze a rich spatial model that allows for spillovers, matching and income tax, in a setting with multiple work and residential locations and very general worker heterogeneity. The conventional consumer surplus captures part of the benefits and is calculated based on predictions of changes in travel demand and transport costs. The issue is to determine which so-called wider impacts to add to this. We find that adding the change in total output as a wider impact leads to double-counting of benefits. The output change due to spillovers should be added, while the output change due to matching is already partly included in the consumer surplus. These results are useful for applied cost-benefit analysis of transport policies.
KW - Agglomeration
KW - Cost-benefit analysis
KW - Matching
KW - Spillovers
KW - Transport policy
UR - http://www.scopus.com/inward/record.url?scp=85062710604&partnerID=8YFLogxK
U2 - 10.1016/j.ecotra.2019.02.001
DO - 10.1016/j.ecotra.2019.02.001
M3 - Journal article
AN - SCOPUS:85062710604
VL - 18
SP - 1
EP - 9
JO - Economics of Transportation
JF - Economics of Transportation
SN - 2212-0122
ER -
ID: 216764186