Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/237391 
Title (translated): 
Methods to Evaluate Agglomeration Effects in Transport System appraisal Frameworks
Year of Publication: 
2020
Series/Report no.: 
ETLA Report No. 101
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract (Translated): 
The spatial concentration of production and population to urban areas is an important theme in societal discussion. The spatial concentration of economic activity is called agglomeration in urban economics. The economic impact of agglomeration is seen in the productivity of firms. Understanding agglomeration and its impacts is important from the point of view of transport, business and urbanization policies. This report lays out a theoretical framework that can be used to analyze the impacts of agglomeration and examine how the improvements of the transport system affects agglomeration. The recent empirical literature on the impact of the transport system on agglomeration is reviewed and the challenges of this literature are discussed. The focus is especially on how the impact of changes in the transport system on agglomeration can be analyzed in a reliable way. The main threats to reliable analysis are double counting of benefits and poor research designs leading to too large estimates of the elasticity between accessibility and productivity. The report provides recommendations on how the transport appraisal frameworks should be developed to capture agglomeration effects, and highlights the need for Finnish research on this subject.
Subjects: 
Transport system
Agglomeration
Wider economic impacts
JEL: 
R42
H43
H54
Document Type: 
Research Report

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.