Optimal transport networks in spatial equilibrium

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• dc.contributor.author Fajgelbaum, Pablo
• dc.contributor.author Schaal, Edouard
• dc.date.accessioned 2020-07-24T08:45:59Z
• dc.date.available 2020-07-24T08:45:59Z
• dc.date.issued 2020
• dc.description Includes supplemental material: online appendix; replication file
• 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.
• dc.description.sponsorship Edouard Schaal acknowledges financial support from the Spanish Ministry of Economy and Competitiveness, through the Severo Ochoa Programme for Centres of Excellence in R&D (SEV-2015-0563), the Barcelona GSE (Grant SG-2017-07), and the European Research Council Starting Grant 804095.
• dc.format.mimetype application/pdf
• dc.identifier.citation Fajgelbaum P, Schaal E. Optimal transport networks in spatial equilibrium. Econometrica. 2020 Jul;88(4):1411-52. DOI: 10.3982/ECTA15213
• dc.identifier.doi http://dx.doi.org/10.3982/ECTA15213
• dc.identifier.issn 0012-9682
• dc.identifier.uri http://hdl.handle.net/10230/45187
• dc.language.iso eng
• dc.publisher Wiley
• dc.relation.ispartof Econometrica. 2020 Jul;88(4):1411-52. DOI: 10.3982/ECTA15213
• dc.relation.projectID info:eu-repo/grantAgreement/EC/H2020/804095
• dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/SEV-2015-0563
• dc.rights © 2020 The Authors. Licensed under the Creative Commons Attribution-NonCommercial License 4.0 (https://creativecommons.org/licenses/by-nc/4.0/legalcode)
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.rights.uri https://creativecommons.org/licenses/by-nc/4.0/
• dc.subject.keyword Transport network
• dc.subject.keyword Spatial equilibrium
• dc.subject.keyword Economic geography
• dc.title Optimal transport networks in spatial equilibrium
• dc.type info:eu-repo/semantics/article
• dc.type.version info:eu-repo/semantics/publishedVersion