Arbeitspapier

Regional borders, commuting and transport network integration

I study how and why economic activity varies around regional borders. Spatial quasi-experimental variation around French departmental borders reveals discontinuous commuting and residential patterns. To tackle the endogenous border placement problem, I exploit a geometric border design proposed during the French Revolution. I then calibrate a spatial quantifiable general equilibrium framework to structurally match the quasi-experimental estimates. The commuting and residential discontinuities are well explained by a 7km bilateral distance penalty when crossing regional borders, which is the consequence of the decentralized planning and development of local transport networks. Policy simulation shows that integrating local transport networks leads to a 11.7% average growth in real per capita residential income.

Language
Englisch

Bibliographic citation
Series: KOF Working Papers ; No. 489

Classification
Wirtschaft
Size and Spatial Distributions of Regional Economic Activity
Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Subject
Border
Commuting
Discontinuity
Transport network
Decentralization

Event
Geistige Schöpfung
(who)
Loumeau, Gabriel
Event
Veröffentlichung
(who)
ETH Zurich, KOF Swiss Economic Institute
(where)
Zurich
(when)
2020

DOI
doi:10.3929/ethz-b-000458728
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Loumeau, Gabriel
  • ETH Zurich, KOF Swiss Economic Institute

Time of origin

  • 2020

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