nep-geo New Economics Papers
on Economic Geography
Issue of 2006‒10‒28
23 papers chosen by
Vassilis Monastiriotis
London School of Economics

  1. Public Infrastructures and Regional Asymmetries in Spain By Alfredo M. Pereira; Oriol Roca Sagales
  2. Housing Market Dynamics and Regional Migration in Britain By Cameron, Gavin; Muellbauer, John; Murphy, Anthony
  3. City Size and Financial Development By Becker, Bo
  4. Technological Leadership, Human Capital and Economic Growth: A Spatial Econometric Analysis for U.S. Counties, 1969-2003 By Valerien Pede; Raymond Florax; Henri de Groot
  5. Spatial Mobility and Returns to Education: Some Evidence from a Sample of French Youth By Philippe Lemistre; Nicolas Moreau
  6. Assessing the Effects of Local Taxation Using Microgeographic Data By Duranton, Gilles; Gobillon, Laurent; Overman, Henry G.
  7. A model of economic geography with demand pull and congestion costs By Olga Alonso-Villar
  8. A discussion of different methods of constructing regional welfare weights By Haluk SEZER
  9. Why So Many Local Entrepreneurs? By Michelacci, Claudio; Silva, Olmo
  10. A Reflection On The Effects Of Transport Costs Within The New Economic Geography By Olga Alonso-Villar
  11. A Spatio-Temporal Model of House Prices in the US By Sean Holly; M. Hashem Pesaran; Takashi Yamagata
  12. PATENTS, TECHNOLOGICAL INPUTS AND SPILLOVERS AMONG REGIONS By Mercedes Gumbau Albert; Joaquín Maudos Villarroya
  13. New technologies and economic growth: a regional approach. The case of Andalucia By Jesús Rodríguez López; Diego Martínez López
  14. Mega-Events: The effect of the world’s biggest sporting events on local, regional, and national economies By Victor Matheson
  15. Functional fragmentation and the location of multinational firms in the enlarged Europe. By Fabrice Defever
  16. Employment effects of a payroll-tax cut - evidence from a regional tax exemption experiment By Korkeamäki, Ossi; Uusitalo, Roope
  17. Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies By Fröhlich, Markus; Lechner, Michael
  18. Social Interaction and Urban Sprawl By Jan K. Brueckner; Ann G. Largey
  19. Quality of Life in the Economic and Urban Economic Literature By Bianca Biagi; Dionysia Lambiri; Vicente Royuela
  20. House Prices, Rents and Interest Rates Under Collateral Constraints By Arce, Oscar; López-Salido, J David
  21. A scoreboard to evaluate clusters’ competitiveness in the knowledge-based economy. An empirical study on Emilia Romagna region By Andrea GANZAROLI; Gianluca FISCATO; Luciano PILOTTI
  22. Merged Municipalities, Higher Debt: On Free-riding and the Common Pool Problem in Politics By Jordahl, Henrik; Liang, Che-Yuan
  23. Economic evaluation and incentives in transport infrastructure investment By Gines de RUS

  1. By: Alfredo M. Pereira (Department of Economics, College of William and Mary); Oriol Roca Sagales (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona)
    Abstract: The objective of this paper is to investigate the effects of public infrastructures on regional economic performance in Spain. The empirical results are based on VAR models relating output, employment, private capital, and public infrastructures. We estimate models at the aggregate level and for each of the seventeen autonomous regions that make up Spain. In the regional models, both public infrastructures in the region and public infrastructures elsewhere are considered, thereby taking into consideration the possible existence of regional spillovers of the effects of public infrastructures. Indeed, our empirical results show that regional spillovers are very important in the case of output and private capital but not in terms of employment, reflecting a low degree of mobility in the Spanish labor markets. More importantly, empirical results suggest that although public infrastructures have been a powerful instrument to promote long-term growth, they have done so in a way that is rather unbalanced across regions. This means that aggregate convergence in Spain to EU standards of living has been achieve at the cost of increased domestic asymmetries.
    Keywords: public infrastructures, regional spillovers, regional asymmetries, Spain
    JEL: C32 H54 R53
    Date: 2006–10–08
  2. By: Cameron, Gavin; Muellbauer, John; Murphy, Anthony
    Abstract: Economic conditions exert a strong influence on regional migration. On the one hand, strong labour market conditions, as exemplified by low unemployment rates and high earnings, draw migrants into regions. On the other hand, strong housing market conditions can prevent movement since expensive housing can deter migrants and commuting may often be an alternative. This can be thought of as giving rise to a migration equilibrium, where high house prices choke off migration caused by strong labour market conditions. Expected capital gains in housing and expected earnings growth however, can offset high levels of house prices, effects ignored in previous literature. Migration can also be influenced more directly by the availability of housing relative to population without this being mediated through prices. This paper presents evidence from a 28 year panel on net and gross migration for the regions of Britain that is broadly in accord with these expectations.
    Keywords: contiguity; expected capital gains; Great Britain; house prices; regional migration; regional panel
    JEL: C33 J19 R3
    Date: 2006–09
  3. By: Becker, Bo (University of Illinois at Urbana-Champaign)
    Abstract: Stock markets tend to be few in each country, often unique, and located in the largest cities. Typically, much of the economic activity relating to the stock market takes places in this large city. These facts suggest that agglomeration economies are important. In other words, productivity is enhanced for stock market-workers and -firms located in a large city. After discussing this prima facie evidence of agglomeration economies, we consider the cross-country implications. Countries with larger cities will have better developed stock markets because they can benefit from stronger agglomeration economies surrounding the stock market. This provides an economic theory of financial development which is complementary to the standard legal and political theories of financial development. We establish that city size is a robust determinant of stock market size and activity, but not of other types of financial development (banks). We show that this is not driven by reverse causality and that it is not driven by small or new stock markets. Finally, we show that alternative measures of a country's geography, such as urbanization and the population of the second largest city, do not predict stock market development, implying that we do not capture some alternative geographic effect. We conclude that there is a significant positive effect of city size on stock market development, that this reflects agglomeration economies. This explains why countries with large cities have better developed stock markets.
    Keywords: City size; agglomeration economies; financial development
    JEL: G10 G20 O16 R10
    Date: 2006–09–15
  4. By: Valerien Pede; Raymond Florax (Department of Agricultural Economics, College of Agriculture, Purdue University); Henri de Groot (Department of Spatial Economnics, Frije Universiteit, The Netherlands)
    Abstract: The traditional view of cities as monocentric conglomerates of people clustered around an employment center, driving economic growth in cities that subsequently trickles down to the hinterland, is increasingly being challenged. In particular, the role of space, technological leadership, human capital, increasing returns to scale and industrial clustering as well as hierarchical organization principles have been emphasized in the more recent literature. This paper utilizes exploratory and spatial econometric data analysis techniques to investigate these issues for U.S. counties using data from 1969 through 2003. Ultimately, contiguous and hierarchical organization and interaction patterns are captured using an endogenous growth model allowing for spatial effects, inspired by earlier work on human capital and technology gaps. We investigate a neoclassical growth model and compare it to a spatial version of an endogenous growth model allowing for “domestic” investment in human capital and catch-up to the technology leader, and find that human capital strongly contributes to growth in a neoclassical setting, but much less so in an endogenous setting. In the endogenous model the catch-up term dominates in comparison to “domestic” human capital effects.
    Keywords: economic growth, human capital, technological leadership
    JEL: C21 I23 O33 R12
    Date: 2006
  5. By: Philippe Lemistre (Cereq and Lirhe, University of Toulouse 1); Nicolas Moreau (Gremaq, University of Toulouse 1 and IZA Bonn)
    Abstract: The purpose of this article is to reevaluate the returns to geographic mobility and to the level of education, taking into account the interaction between these two variables. We have at our disposal an original French database that permits precise calculation of the distance between the place of education and the location of first employment. We thus capture mobility without a priori regarding the geographical areas selected, and we use kilometric thresholds to estimate the returns to spatial mobility. Our results suggest decreasing returns to spatial mobility as the distance covered rises and increasing returns to mobility with higher levels of education. In addition, for all levels of education, including the lowest, returns to geographic mobility prove to be positive, for one threshold at least and several distances.
    Keywords: spatial mobility, returns to schooling, earnings function
    JEL: J31 J61 I21
    Date: 2006–10
  6. By: Duranton, Gilles; Gobillon, Laurent; Overman, Henry G.
    Abstract: We study the impact of local taxation on the location and growth of firms. Our empirical methodology pairs establishments across jurisdictional boundaries to estimate the impact of taxation. Our approach improves on existing work as it corrects for unobserved establishment heterogeneity, for unobserved time-varying site specific effects, and for the endogeneity of local taxation. Applied to data for English manufacturing establishments we find that local taxation has a negative impact on employment growth, but no effect on entry.
    Keywords: borders; local taxation; regression discontinuity; spatial differencing
    JEL: H22 H71 R38
    Date: 2006–09
  7. By: Olga Alonso-Villar (Universidade de Vigo)
    Abstract: This paper proposes a simple model of economic geography in which to derive analytical results when jointly considering two centrifugal forces —congestion costs together with the pull demand effect— within the Dixit-Stiglitz-Iceberg framework. In this vein, we develop a unified model with labor mobility that combines some of the features of Tabuchi (1998) with those of Forslid and Ottaviano (2003). We analytically show that when considering the effects of congestion costs, dispersion of economic activity is possible not only at high but also at low transport costs. This result corroborates previous numerical simulations conducted by Tabuchi (1998).
    Keywords: Congestion costs, demand pull, urban concentration, transport costs.
    JEL: R12 F12 F15 O18
    Date: 2006
  8. By: Haluk SEZER
    Abstract: Income per capita is an important and hence widely used measure in the construction of social welfare weights. This paper, however, aims to discuss the construction of social welfare weights based not merely on Income per capita but on equally distributed equivalent income (EDEI). For example, the use of EDEI allows the intra-regional distribution of income to be taken directly into account when constructing regional welfare weights.Based on the data regarding two contrasting geographical regions of Turkey, the paper aims to demonstrate the impact of using EDEI, as opposed to unadjusted per capita income, on the magnitudes of calculated regional welfare weights. The EDEI method would be useful for the purpose of constructing regional welfare weights for application in the appraisal of social projects within the EU
    Keywords: regional welfare weights, cost-benefit analysis, elasticity of marginal utility of income
    JEL: C60 C61
    Date: 2006–10
  9. By: Michelacci, Claudio; Silva, Olmo
    Abstract: We document that the fraction of entrepreneurs who work in the region where they were born is significantly higher than the corresponding fraction for dependent workers. This difference is more pronounced in more developed regions and positively related to the degree of local financial development. Firms created by locals are more valuable and bigger (in terms of capital and employment), operate with more capital intensive technologies, and are able to obtain greater financing per unit of capital invested, than firms created by non-locals. This evidence suggests that there are so many local entrepreneurs because locals can better exploit the financial opportunities available in the region where they were born. This can help in explaining how local financial development causes persistent disparities in entrepreneurial activity, technology, and income.
    Keywords: economic and financial development; entrepreneurship; social capital
    JEL: J23 O12 O16 Z13
    Date: 2006–09
  10. By: Olga Alonso-Villar (Universidade de Vigo)
    Abstract: The purpose of this paper is to analyze, in the light of recent contributions of New Economic Geography models, the spatial consequences of transport cost reductions. So far, the role of transport costs have been only partially unveiled, since papers focused either on the Dixit-Stiglitz-Iceberg framework or on the alternative framework put forth by Ottaviano et al. (2002)—which departs from the former in preferences and transport modelling. This paper goes a step further, offering a comprehensive view that includes the two approaches, in contexts both of two and of more than two locations. As opposed to other revisions of the literature, which have focused mainly on the centripetal forces included in these models, we emphasize the role of dispersion forces. The study suggests that in a two-location setting the results seem quite robust against changes in transportation modelling, so that considering either multiplicative transport costs or additive the predictions are identical. However, when allowing for a multilocation setup, the analysis becomes more complex.
    Keywords: agglomeration, dispersion, monopolistic competition, transport costs.
    JEL: F12 R12
    Date: 2006
  11. By: Sean Holly (CIMF, University of Cambridge); M. Hashem Pesaran (CIMF, University of Cambridge and IZA Bonn); Takashi Yamagata (CIMF, University of Cambridge)
    Abstract: The purpose of this paper is to apply recent advances in the econometrics of panel data to a problem that has a clear spatial dimension. We model the dynamic adjustment of real house prices using data at the level of US States. In the last decade, in most OECD countries there has been a significant rise in real house prices. This attracted the attention of many international organisations and central banks. In this paper we consider interactions between housing markets by examining the extent to which real house prices at the State level are driven by fundamentals such as real income, as well as by common shocks, and determine the speed of adjustment of house prices to macroeconomic and local disturbances. We take explicit account of both cross sectional dependence and heterogeneity. This allows us to find a cointegrating relationship between house prices and incomes and to identify a small role for real interest rates. Using this model we then examine the role of spatial factors, in particular the effect of contiguous states by use of a weighting matrix. We are able to identify a significant spatial effect, even after controlling for State specific real incomes, and allowing for a number of unobserved common factors.
    Keywords: house price, cross sectional dependence, spatial dependence
    JEL: C21 C23
    Date: 2006–09
  12. By: Mercedes Gumbau Albert (Universitat de València); Joaquín Maudos Villarroya (Instituto Valenciano de Investigaciones Económicas)
    Abstract: This paper analyses the importance of different technological inputs (R&D and human capital) and different spillovers in explaining the differences in patenting among Spanish regions in the period 1986-2003. The analysis is based on the estimation of a knowledge production function. A region¿s own R&D activities and human capital are observed to have a positive significant effect on innovation output, measured by the number of patents. R&D spillovers weighted by the distance and the volume of trade flows between regions cause positive effects on a region¿s patents. However, distance matters more than the intensity of trade flows and the R&D spillover effects between regions are bounded: spillovers from closer regions perform better than spillovers from distant regions. On the opposite side, human capital spillovers do not cause any effect outside the region itself. El trabajo analiza la importancia de diferentes inputs tecnológicos (I+D y capital humano) y sus correspondientes efectos spillover en la explicación de las diferencias en la propensión a patentar de la regiones españolas en el periodo 1986-2003. El análisis se basa en la estimación de una función de producción de conocimiento. Los resultados indican que el gasto en I+D y el capital humano de cada región afectan positivamente a la actividad innovadora (nmero de patentes). Los efectos spillover asociados al gasto en I+D (ponderados por la distancia kilométrica y los flujos comerciales) afectan positivamente al número de patentes. Sin embargo, la distancia importa más que la intensidad de los flujos comerciales. Los spillovers tecnológicos están acotados ya que son más importantes los asociados a las regiones más próximas. Por el contrario, los efectos spillover procedentes del capital humano no tienen efectos fuera de la propia region considerada.
    Keywords: patentes, I+D, capital humano, spillovers patents, R&D, human capital, spillovers
    JEL: O18 O31 R11
    Date: 2006–10
  13. By: Jesús Rodríguez López (Department of Economics, Universidad Pablo de Olavide); Diego Martínez López (Centro de Estudios Andaluces y Department of Economics, Universidad Pablo de Olavide)
    Abstract: This paper studies the contribution of Information and Communication Technologies (ICT) to economic growth and labor productivity growth in Andalucía (Spain) over 1995-2004. We find that the contribution of ICT assets to total market GVA growth is quantitatively modest. However the contribution to GVA growth and employment growth within the intensive ICT sectors has experienced a considerable increase during the period. Although our analysis detects that intensive ICT sectors exhibit a high productivity level with respect to that of the non intensive ones, our main conclusion is that the advantages that might emerge from the use of ICT are nor yet observable in the economic dynamics of Andalucía, at least in a similar manner to that of the most developed.
    Keywords: Information and Communication Technologies, productivity, regional growth.
    JEL: O30 O40 O47
    Date: 2006–10
  14. By: Victor Matheson (Department of Economics, College of the Holy Cross)
    Abstract: This paper provides an overview of the economics of sports mega-events as well as a review of the existing literature in the field. The paper describes why boosters’ <i>ex ante</i> estimates of the economic impact of large sporting events tend to exaggerate the net economic benefits of these events and surveys the results of a large number of <i>ex post</i> studies of exploring the true impact of mega-events.
    Keywords: sports, impact analysis, mega-events
    JEL: L83
    Date: 2006–10
  15. By: Fabrice Defever (Panthéon-Sorbonne Economie)
    Abstract: Despite the recent advances in the theory of location, the analysis of the role of services surrounding production activity has been largely neglected. This paper analyzes the co-location of a multinational firm's value chain in the enlarged European Union. Depending on its particular characteristics, each function (or activity) would favor different country characteristic. Opposing this dispersion force, vertical linkages between stages can encourage firms to co-locate different activities in the same country. We use recently collected individual firm data on almost 11 000 location choices for a 5 years period and 23 countries. We analyze the determinants of location choice for each activity, including sectoral and functional agglomeration variables. We also illuminate the co-location of functions at the firm level, specifically that of R&D and production.
    Keywords: Functional fragmentation, vertical linkages, location choice.
    JEL: F23 L22 R3
    Date: 2006–06
  16. By: Korkeamäki, Ossi (Government Institute for Economic Research); Uusitalo, Roope (Institute for Labour Market Policy Evaluation)
    Abstract: In this paper we evaluate the effects of a regional experiment that reduced payroll-taxes by 3–6 percentage points for three years in Northern Finland. We match each firm in the target region with a similar firm in the control region and estimate the effect of the payroll-tax reduction by comparing employment and wage changes within the matched pairs before and after the start of the experiment. According to our results the reduction in the payroll-taxes led to somewhat faster wage growth in the target region. The increase in wages offset roughly half of the impact of the payroll tax cut on the labour costs. The remaining labour cost reduction had no significant effects on employment.
    Keywords: Payroll-tax; Labour demand; Tax incidence; Propensity score matching
    JEL: J18 J23 J38 J58 J65 J68
    Date: 2006–10–10
  17. By: Fröhlich, Markus; Lechner, Michael
    Abstract: We estimate the effects of active labour market policies (ALMP) on subsequent employment by nonparametric instrumental variables and matching estimators. Very informative administrative Swiss data with detailed regional information are combined with exogenous regional variation in programme participation probabilities, which generate an instrument within well-defined local labour markets. This allows pursuing instrumental variable as well as matching estimation strategies. A specific combination of those methods identifies a new type of effect heterogeneity. We find that ALMP increases individual employment probabilities by about 15% in the short term for unemployed that may be called 'marginal' participants. The effects seem to be considerably smaller for those unemployed not marginal to the participation decision.
    Keywords: active labour market policy; conditional local IV; Fuller estimator; geographic location; local average treatment effect; state borders; Switzerland
    JEL: C14 C21 J68
    Date: 2006–06
  18. By: Jan K. Brueckner (Department of Economics, University of California-Irvine); Ann G. Largey (Dublin City University Business School)
    Abstract: Various authors, most notably Putnam (2000), have argued that low-density living reduces social capital and thus social interaction, and this argument has been used to buttress criticisms of urban sprawl. If low densities in fact reduce social interaction, then an externality arises, validating Putnam's critique. The paper tests this premise using data from the Social Capital Benchmark Survey. In the empirical work, social interaction measures for individual survey respondents are regressed on census-tract density and a host of household characteristics, using an instrumental-variable approach to control for the potential endogeneity of density.
    Keywords: Conflict; Urban sprawl; Social capital
    JEL: R1 J11
    Date: 2006–10
  19. By: Bianca Biagi; Dionysia Lambiri; Vicente Royuela
    Abstract: Quality of life is increasingly becoming a concept researched empirically and theoretically in the field of economics. In urban economics in particular, this increasing interest stems mainly from the fact that quality of life affects urban competitiveness and urban growth: research shows that when households and businesses decide where to locate, quality of life considerations can play a very important role. The purpose of the present paper is to examine the way economic literature and urban economic literature in particular, have adopted quality of life considerations in the economic thinking. Moreover, it presents the ways various studies have attempted to capture the multidimensional nature of the concept, and quantify it for the purposes of empirical research. Conclusions are drawn on the state of affairs regarding the study of quality of life in economics, as well as the problems of measurement arising mainly from the complex nature of the concept.
    Keywords: Urban Economics, Quality of life.
    JEL: R00 I31 R12
    Date: 2006
  20. By: Arce, Oscar; López-Salido, J David
    Abstract: We develop an OLG model aimed at explaining the joint determination of housing prices, rents, and interest rates, in an environment featuring a positive home ownership bias and individual borrowing limits that generate a mismatch between desired and available funds to finance housing purchases. Individual heterogeneity on this mismatch gives rise to three different types of households: renters, landlords (i.e. buy-to-let investors, who provide the stock of houses for rent) and homebuyers who do not participate in the rental market. We investigate the conditions under which two alternative stationary equilibria may coexist: (i) a low valuation equilibrium (LVE) in which landlords do not exhaust their borrowing limits; and (ii) a high valuation one (HVE) where every household is financially constrained at the time of purchasing its housing stock. In a HVE (relative to the LVE) the volume of buy- to-let investment, the price-to-rent ratio and the housing price are higher while the interest rate is lower. Due to binding borrowing constraints, in a HVE further reductions in the interest rate only bear a positive networth effect through a reduction of the cost of repaying outstanding mortgaged debt, which fuels future availability of funds, thus sustaining the higher demand for credit. More generally, coexistence of both types of equilibria provides a rationale for the existence of speculative paths from a LVE to a HVE.
    Keywords: buy-to-let investment; collateral constraints; multiple equilibria; price-to-rent ratio
    JEL: G21 R21 R31
    Date: 2006–05
  21. By: Andrea GANZAROLI; Gianluca FISCATO; Luciano PILOTTI
    Abstract: Our main objective with this paper is to propose a scoreboard useful to assess clusters’ competitiveness in a knowledge-based economy. Our scoreboard is grounded on the concept of ecology of value. This concept highlights that the competitiveness of a network of small and medium enterprises depends on its capacity to leverage on firms’ strategic autonomy and self-determinacy by providing a context of interaction that is socially rich and adapted to sustain the development of intense ongoing relationships. In our scoreboard the concept of competitiveness is structured into two levels. The top level is made of a matrix that synthesizes cluster’s competitive position in terms of quality of the social capital available and of the learning process activated. The second level is made of three matrixes useful to deepen the reasons that contribute to define a cluster’s competitive position. We test our scoreboard in seven clusters of Emilia Romagna. Our scoreboard proves itself a useful benchmarking tool and a potential good support for policymaking
    Keywords: competitive advantage, knowledge creation, scoreboard
    JEL: L22 L25 L53 O18
    Date: 2006–10
  22. By: Jordahl, Henrik (Research Institute of Industrial Economics); Liang, Che-Yuan (Uppsala University)
    Abstract: We use the 1952 Swedish municipal amalgamation reform to study free-riding and the common pool problem in politics. We expect municipalities that were affected by the reform to increase their debt in anticipation of a merger, and this effect to be larger if they were merged with many other populous municipalities (i.e. facing a large common pool). We use ordinary least squares and matching on the complete cross section of rural municipalities for the period 1947-1951, fixed effects when exploiting the panel features, as well as a geographical instrumental variables strategy. We find an average treatment effect close to the amount that the average merged municipality increased its debt with during this period, which corresponds to 2.8 percent of average income or 63 percent of the average increase in income. However, we do not find larger increases in municipalities that were part of a larger common pool.
    Keywords: Common pool; municipal amalgamation; local governments
    JEL: D72 H73 H74 H77 R53
    Date: 2006–10–19
  23. By: Gines de RUS
    Abstract: Large infrastructure projects are high cost investments devoted to the construction and operation of long life, specific assets, characterized by demand uncertainty and irreversibility. Besides these technical characteristics, the usual institutional setting for the proposal, evaluation and selection of projects, is one of different agents in a context of asymmetric information, with their own, and sometimes conflicting, objective functions. The selection of large investment projects in a multi-government setting, as it is the case within the European Union, deserves some modelling of the decision taking process. Many infrastructure projects co-financed by the European Commission can be treated as investments proposed by a Member State, approved and partially financed by the Commission. Once it is assumed that the objective function of the European Commission and any Member State may differ it is worth examining the consequences in terms of the incentives in the actual system of selection and finance of large infrastructure projects. This paper addresses the adverse selection problem which may be favouring the construction of socially undesirable projects from a European perspective.One way out of this is a better design for project selection introducing alternative mechanism with new incentives aimed to the efficient allocation of public funds. Meanwhile, to gather new information can help in the screening of projects. This paper deals with the problem of increasing the information available through the use of known cost ranges and values determinant in the social profitability of high speed rail investment projects. The idea is to inverse the evaluation process, and to figure out the demand threshold required for a positive net social benefit, instead of estimating the net social benefit of the project given a demand forecast. This does not mean that the present incentives to inefficient investment will change, but relevant information on the starting demand volumes required for a project to be socially profitable will help in the discussion on the ranking of projects competing for public money.
    Keywords: Cost Benefit Analysis, Transport Infrastructure, High Speed Rail
    JEL: R41 R42 H43
    Date: 2006–10

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