Transport-Induced agglomeration effects : evidence for US metropolitan areas

While the interaction between transport and agglomeration economies is widely accepted, there is insufficient research attempting at a direct empirical quantification. Using a balanced panel dataset for US metropolitan areas, we estimate a system of simultaneous equations to measure the indirect effect of urban agglomeration economies which arises through transport provision. Our findings suggest that public transit reinforces the effect of urban agglomeration, whereas road lane miles appear to weaken it. The results highlight the importance of public transit in supporting positive urban agglomeration externalities. ; info:eu-repo/semantics/publishedVersion