Evaluating urban transport improvements: cost benefit analysis in the presence of agglomeration and income taxation

Venables, Tony (2004) Evaluating urban transport improvements: cost benefit analysis in the presence of agglomeration and income taxation. CEPDP (651). London School of Economics and Political Science. Centre for Economic Performance, London, UK. ISBN 0753017814

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Abstract

There is a substantial empirical literature quantifying the positive relationship between city size and productivity. The paper draws out the implications of this productivity relationship for evaluations of urban transport improvements. A theoretical model is developed and used to derive a wider cost-benefit measure that includes productivity effects. The order of magnitude of such effects is illustrated by calculations in a simple computable equilibrium model. It is argued tht productivity effects, particularly when combined with distortionary taxation, are quantitatively important, substantially increasing the gains that are created by urban transport improvements.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2004 Anthony J. Venables
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HE Transportation and Communications H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance
JEL classification:	R - Urban, Rural, and Regional Economics > R2 - Household Analysis > R20 - General R - Urban, Rural, and Regional Economics > R4 - Transportation Systems > R42 - Government and Private Investment Analysis
Date Deposited:	27 Apr 2007
Last Modified:	11 Sep 2025 03:57
URI:	http://eprints.lse.ac.uk/id/eprint/2205

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