Journal Article

Urban Growth and Transportation

Gilles Duranton and Matthew A. Turner

in The Review of Economic Studies

Published on behalf of Review of Economic Studies Ltd

Volume 79, issue 4, pages 1407-1440
Published in print October 2012 | ISSN: 0034-6527
Published online March 2012 | e-ISSN: 1467-937X | DOI: http://dx.doi.org/10.1093/restud/rds010
Urban Growth and Transportation

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  • Urban, Rural, and Regional Economics
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We estimate the effects of interstate highways on the growth of U.S. cities between 1983 and 2003. We find that a 10% increase in a city's initial stock of highways causes about a 1.5% increase in its employment over this 20 year period. To estimate a structural model of urban growth and transportation, we rely on an instrumental variables estimation that uses a 1947 plan of the interstate highway system, an 1898 map of railroads, and maps of the early explorations of the U.S. as instruments for 1983 highways.

Keywords: Urban growth; Transportation; Interstate highways; Instrumental variables; L91; N70; R11; R49

Journal Article.  18231 words.  Illustrated.

Subjects: Urban, Rural, and Regional Economics ; Economic History ; Transport ; Transportation Systems

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