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The Welfare Effects of Transportation Infrastructure Improvements

Costas Arkolakis (Yale University)

12 avril 2017  -  11:00-12:30, salle Extranef 109

Host(s): Frederic Robert-Nicoud

In this paper, we develop a framework to characterize the impact of infrastructure investment on welfare. We suppose infrastructure investment affects the cost of shipping goods between directly connected locations and the total bilateral cost between any two locations is determined by traders optimally traveling across the complete transportation network. Our approach comprises two distinct but complementary characterizations: First, we characterize how infrastructure investment between any two connected locations decreases the total trade costs between all pairs of locations. Second, we characterize how the cost reduction between any two locations changes affects welfare. We apply these results to shipment level data between U.S. cities to calculate the welfare effects of improving each portion of the U.S. Interstate Highway System (IHS). We find very heterogeneous welfare effects of improvements to different sections of the IHS – reducing the travel time by 30 minutes on I-95 South from New York to Philadelphia would increase aggregate U.S. welfare by 0.02%, whereas reducing the travel time by 30 minutes from Seattle to Salt Lake City along I-84 East would only increase aggregate U.S. welfare by one-hundredth of that.

Liste des prochaines séances

20 septembre 2017 Hilary Hoynes (Berkeley University)
Host(s): Rafael Lalive
11:00-12:30, salle Extranef 109

click here [↓] to go to the attached pdf
28 septembre 2017 Antonio Ciccone (UPF & Mannheim University)
Host(s): Dominic Rohner
11:00-12:30, salle Extranef 109

click here [↓] to go to the attached pdf
26 octobre 2017 Ralph Ossa (Zurich University)
Host(s): Frédéric Robert-Nicoud
11:00-12:30, salle Extranef 125

click here [↓] to go to the attached pdf
2 novembre 2017 Florian Scheuer
Host(s): Marius Brülhart
11:00-12:30, salle Extranef 125

click here [↓] to go to the attached pdf
23 novembre 2017 Mirko Wiederholt (Goethe Universität)
Host(s): Andreas Tischbirek
11:00-12:30, salle Extranef 109

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12 décembre 2017 Piero Gottardi (EUI, Florence)
Host(s): Luis Santos Pinto
11:00-12:30, salle Extranef 109

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21 février 2018 Jean-Robert Tyran (University of Vienna)
Host(s): Adrian Bruhin
11:00-12:30, salle Extranef 109

click here [↓] to go to the attached pdf
8 mars 2018 Nicola Gennaioli (Bocconi University)
Host(s): Dominic Rohner
11:00-12:30, salle Extranef 125

click here [↓] to go to the attached pdf
21 mars 2018 Yves Sprumont (Université de Montréal)
Host(s): Bettina Klaus
11:00-12:30, salle Extranef 109

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19 avril 2018 Nicole Maestas (Harvard University)
Host(s): Jürgen Maurer
11:00-12:30, salle Extranef 109

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31 mai 2018 Monika Piazzesi (Stanford University)
Host(s): Jean-Paul Renne
11:00-12:30, salle Extranef 109

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>> Liste des séances précédentes
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