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Estimation of accessibility elasticities in connection with the Öresund fixed link using a panel of micro-data
KTH, School of Architecture and the Built Environment (ABE), Transport Science, Transport and Location Analysis.
(English)In: Regional Science and Urban Economics, ISSN 0166-0462, E-ISSN 1879-2308Article in journal (Other academic) Submitted
Abstract [en]

The productivity of public infrastructure has been the subject of numerous studies during the last two decades, often with vastly differing results. Matters of concern for these estimates have been the level of aggregation of the data, the measurement of the infrastructure stock, and endogeneitybias. In an attempt to estimate the wider economic impacts of the Öresund fi…xed link, these issues are addressed by estimating production functions from fi…rm data in Scania——the Swedish part of the Öresund region——using a novel method due to Olley and Pakes (1996), that takes endogenous inputchoices and self-selection into account. As a measure of the service provided by the infrastructure, accessibility to the workforce is used on a fi…ne-grained geographic level. The sign and signi…ficance of the two sources of bias are tested, as well as the robustness of the accessibility parameter with respect to the speci…cation of the barrier of trips across Öresund.

Keyword [en]
Firm performance, agglomeration, market potential, accessibility, Öresund region, Olley and Pakes.
National Category
Economic Geography
Research subject
SRA - Transport
URN: urn:nbn:se:kth:diva-33645OAI: diva2:416826
TrenOp, Transport Research Environment with Novel Perspectives
QC 20110513. Updated from manuscript to submitted.Available from: 2011-05-13 Created: 2011-05-13 Last updated: 2017-12-11Bibliographically approved
In thesis
1. Production econometrics and transport demand modelling in Southern and Northern Sweden
Open this publication in new window or tab >>Production econometrics and transport demand modelling in Southern and Northern Sweden
2011 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of three main parts. The first and most important part, in terms of effort and time spent, is devoted to the estimation of the importance of accessibility for production at the firm or plant level using three different econometric estimation approaches. The results could have implications for the calculation of "wider" economic benefits of transport infrastructure, stemming from agglomeration externalities (e.g., scale economies). There are both methodological and result-wise conclusions that can be drawn from this research: methodologically, first, using unbalanced firm-level data requires the use of proxy variables to account for (initial) firm-specific unobserved productivity effects, and non-random exit from the dataset. Second, there are unsolved theoretical problems when applying an essentially aggregate approach to productivity analysis on disaggregate data, viz., relating to the existence of aggregate production functions, and to the aggregation of productivity from a disaggregate level to a more aggregate level in a spatial framework.

Result-wise, clear productivity differences are presented, when comparing firms in the same time period but in different locations with different accessibility. However, it is not possible in this dataset to detect increased productivity for representative firms stemming from the opening of the Öresund link. It is therefore discussed whether the reason for this result could be the inappropriateness of output measures in a competitive business environment, where a large portion of the benefits are gradually transferred to consumers and thus remain unmeasured. Other, more comprehensive structural approaches to econometrics, including the demand side of the economy, are also recommended.

The second part of the thesis treats an unjustly neglected area of transport research: the validation of transport demand models. These transport models are for example used to calculate the new traffic patterns and changes in accessibility from a transport infrastructure investment like the Öresund fixed link, around which most of this thesis orbits. The third and last part, written with two co-authors, deals with the "vulnerability" of the road network, in terms of effects on the travel time delays of the users when a link is disrupted. The calculated indices of importance and exposure could also be seen as extreme forms of accessibility, especially when there is no alternative route besides the one that is cut-off.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2011. 238 p.
Trita-TEC-PHD, ISSN 1653-4468 ; 11-001
Öresund link, productivity, accessibility, micro data, validation, exposure
National Category
Economic Geography
Research subject
SRA - Transport
urn:nbn:se:kth:diva-33451 (URN)978-91-85539-74-1 (ISBN)
Public defence
2011-05-27, D3, Lindstedtsvägen 5, Stockholm, 14:00 (English)
TrenOp, Transport Research Environment with Novel Perspectives
QC 20110513Available from: 2011-05-13 Created: 2011-05-07 Last updated: 2012-06-12Bibliographically approved

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