Spatial Impact of Transportation Infrastructure: A Spatial Econometric Computable General Equilibrium Approach

25 Pages Posted: 18 Jul 2013 Last revised: 29 Jan 2014

See all articles by Zhenhua Chen

Zhenhua Chen

The Ohio State University-City and Regional Planning

Kingsley E. Haynes

Schar School of Policy and Government, George Mason University

Date Written: April 2, 2013

Abstract

This study introduces a new method called Spatial Econometric Computable General Equilibrium (SECGE) model, which integrates both spatial econometrics with computable general equilibrium modeling to improve the effectiveness of impact analysis on transportation infrastructure. Elasticities of factor substitution for the Constant Elasticity Substitution (CES) production function is estimated in spatial econometric models with consideration of spatial dependence. CGE simulations adopting different elasticities of factor substitution show a difference between spatial econometric estimation and traditional OLS estimation. Although the differences are relatively small in this aggregate case study, implications for more sensitive disaggregated regional models are clear.

Keywords: Computable general equilibrium, Spatial econometrics, Spatial impact, Transportation infrastructure

JEL Classification: C23, R11, R42, R53

Suggested Citation

Chen, Zhenhua and Haynes, Kingsley E., Spatial Impact of Transportation Infrastructure: A Spatial Econometric Computable General Equilibrium Approach (April 2, 2013). GMU School of Public Policy Research Paper No. 2013-07. Available at SSRN: https://ssrn.com/abstract=2243812 or http://dx.doi.org/10.2139/ssrn.2243812

Zhenhua Chen (Contact Author)

The Ohio State University-City and Regional Planning ( email )

275 West Woodruff Avenue
Columbus, OH 43210-1138
United States

HOME PAGE: http://u.osu.edu/chen.7172/

Kingsley E. Haynes

Schar School of Policy and Government, George Mason University ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States

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