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Tinbergen Revisited: Benefits from Infrastructure Investments in an Open Economy
Swedish Road and Transport Research Institute (VTI), Linköping.
Umeå universitet, Samhällsvetenskapliga fakulteten, Institutionen för nationalekonomi.ORCID-id: 0000-0001-6121-377x
1997 (engelsk)Rapport (Annet vitenskapelig)
Abstract [en]

In his seminal work, Tinbergen (1957) studied the impact of an infrastructure improvement on the transport cost of existing traffic and on the national product. In a numerical example it was shown that the national product could increase substantially beyond the value of the reduced cost of transportation on the improved link. This difference has been labelled the Tinbergen multiplier. Since the modelled economy was thought of as a first best case, the result has been used among those arguing that transport investments give rise to substantial spill over effects in the economy. However, the result is in contradiction with later results within multimarket welfare analysis under first best assumptions. In this paper we recalculate Tinbergen's model and show that the spectacular result is heavily dependent on the localisation of the transport sector. Hence, our results are of utter importance for today's models of infrastructure assessment.

sted, utgiver, år, opplag, sider
Umeå: Umeå universitet , 1997. , s. 16
Serie
Umeå economic studies, ISSN 0348-1018 ; 431
Emneord [en]
Infrastructure investments, spatial cost-benefit analysis, multimarket welfare analysis, Tinbergen multiplier
HSV kategori
Forskningsprogram
nationalekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-155823OAI: oai:DiVA.org:umu-155823DiVA, id: diva2:1283289
Tilgjengelig fra: 2019-01-28 Laget: 2019-01-28 Sist oppdatert: 2019-02-01bibliografisk kontrollert

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