The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill
As a result of public investment, lower freight transport costs tend to translate into lower local price indices and are associated with equilibria characterized by higher capital intensity, output and consumption. In this paper we investigate an additional effect to these trade gains, namely the ga...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
University of Minnesota Libraries Publishing
2012-10-01
|
| Series: | Journal of Transport and Land Use |
| Subjects: | |
| Online Access: | https://www.jtlu.org/index.php/jtlu/article/view/242 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850219843692789760 |
|---|---|
| author | Ioannis Tikoudis Marcus Sundberg Anders Karlström |
| author_facet | Ioannis Tikoudis Marcus Sundberg Anders Karlström |
| author_sort | Ioannis Tikoudis |
| collection | DOAJ |
| description | As a result of public investment, lower freight transport costs tend to translate into lower local price indices and are associated with equilibria characterized by higher capital intensity, output and consumption. In this paper we investigate an additional effect to these trade gains, namely the gains from labor matching. We simulate a two-region Spatial OLG model in which agents are heterogeneous in terms of skill. Under repeated simulation experiments, we show that, for high household relocation frictions, the possibility of interregional commuting can be seen as an alternative way to realize the potential matching effects. For high levels of skill heterogeneity and a plausible parametric input, a steady state in which labor matching is realized through commuting can be associated with up to 10% higher per capita output, compared to the one with homogenous labor, in which only gains from trade are feasible. |
| format | Article |
| id | doaj-art-761ce83bec8e4db5bc4e0e92016e7fa9 |
| institution | OA Journals |
| issn | 1938-7849 |
| language | English |
| publishDate | 2012-10-01 |
| publisher | University of Minnesota Libraries Publishing |
| record_format | Article |
| series | Journal of Transport and Land Use |
| spelling | doaj-art-761ce83bec8e4db5bc4e0e92016e7fa92025-08-20T02:07:16ZengUniversity of Minnesota Libraries PublishingJournal of Transport and Land Use1938-78492012-10-015210.5198/jtlu.v5i2.242113The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skillIoannis Tikoudis0Marcus Sundberg1Anders Karlström2Royal Institute of TechnologyRoyal Institute of TechnologyRoyal Institute of TechnologyAs a result of public investment, lower freight transport costs tend to translate into lower local price indices and are associated with equilibria characterized by higher capital intensity, output and consumption. In this paper we investigate an additional effect to these trade gains, namely the gains from labor matching. We simulate a two-region Spatial OLG model in which agents are heterogeneous in terms of skill. Under repeated simulation experiments, we show that, for high household relocation frictions, the possibility of interregional commuting can be seen as an alternative way to realize the potential matching effects. For high levels of skill heterogeneity and a plausible parametric input, a steady state in which labor matching is realized through commuting can be associated with up to 10% higher per capita output, compared to the one with homogenous labor, in which only gains from trade are feasible.https://www.jtlu.org/index.php/jtlu/article/view/242Heterogenous skill OLGSpatial OLG |
| spellingShingle | Ioannis Tikoudis Marcus Sundberg Anders Karlström The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill Journal of Transport and Land Use Heterogenous skill OLG Spatial OLG |
| title | The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill |
| title_full | The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill |
| title_fullStr | The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill |
| title_full_unstemmed | The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill |
| title_short | The effects of transport infrastructure on regional economic development: A simulated spatial overlapping generations model with heterogenous skill |
| title_sort | effects of transport infrastructure on regional economic development a simulated spatial overlapping generations model with heterogenous skill |
| topic | Heterogenous skill OLG Spatial OLG |
| url | https://www.jtlu.org/index.php/jtlu/article/view/242 |
| work_keys_str_mv | AT ioannistikoudis theeffectsoftransportinfrastructureonregionaleconomicdevelopmentasimulatedspatialoverlappinggenerationsmodelwithheterogenousskill AT marcussundberg theeffectsoftransportinfrastructureonregionaleconomicdevelopmentasimulatedspatialoverlappinggenerationsmodelwithheterogenousskill AT anderskarlstrom theeffectsoftransportinfrastructureonregionaleconomicdevelopmentasimulatedspatialoverlappinggenerationsmodelwithheterogenousskill AT ioannistikoudis effectsoftransportinfrastructureonregionaleconomicdevelopmentasimulatedspatialoverlappinggenerationsmodelwithheterogenousskill AT marcussundberg effectsoftransportinfrastructureonregionaleconomicdevelopmentasimulatedspatialoverlappinggenerationsmodelwithheterogenousskill AT anderskarlstrom effectsoftransportinfrastructureonregionaleconomicdevelopmentasimulatedspatialoverlappinggenerationsmodelwithheterogenousskill |