Optimal transport networks in spatial equilibrium

dc.contributor.author Fajgelbaum, Pablo
dc.contributor.author Schaal, Edouard
dc.date.accessioned 2020-06-15T10:51:05Z
dc.date.available 2020-06-15T10:51:05Z
dc.date.issued 2019-12
dc.description.abstract We study optimal transport networks in spatial equilibrium. We develop a framework consisting of a neoclassical trade model with labor mobility in which locations are arranged on a graph. Goods must be shipped through linked locations, and transport costs depend on congestion and on the infrastructure in each link, giving rise to an optimal transport problem in general equilibrium. The optimal transport network is the solution to a social planner’s problem of building infrastructure in each link. We provide conditions such that this problem is globally convex, guaranteeing its numerical tractability. We also study cases with increasing returns to transport technologies in which global convexity fails. We apply the framework to assess optimal investments and inefficiencies in the road networks of European countries.ca
dc.format.mimetype application/pdf*
dc.identifier.uri http://hdl.handle.net/10230/44983
dc.language eng
dc.language.iso engca
dc.relation.ispartofseries Working Papers CREI (Centre de Recerca en Economia Internacional);
dc.rights.accessRights info:eu-repo/semantics/openAccessca
dc.title Optimal transport networks in spatial equilibriumca
dc.type info:eu-repo/semantics/workingPaperca

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