Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/251038 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
KOF Working Papers No. 498
Publisher: 
ETH Zurich, KOF Swiss Economic Institute, Zurich
Abstract: 
This paper quantifies the causal effect of capital status on road network integration of U.S.micro/metropolitan statistical areas. Road network integration is defined using a class of measurements that evaluate how well a location is connected to all other locations through the National Highway System (NHS).To tackle the non-random placement of capital cities, I instrument capital status using a k-means clustering algorithm that predicts the boundaries of 48 U.S. states and defines the geographical center as a hypothetical capital location. Overall, I find significant and robust evidence that capital cities are more directly integrated in the NHS than non-capital cities of similar characteristics. I discuss two possible mechanisms behind the capital premium: (i) the favorable geographical position of capital cities within their state and (ii) a political interest in connecting capital cities well to major urban areas around.
Subjects: 
capital cities
transport infrastructure
market access
clustering algorithm
JEL: 
O18
R42
R58
C26
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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