The Spatial Organization of Cities: Transport

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1 The Spatial Organization of Cities: Transport Comments from Leah Brooks Trachtenberg School of Public Policy and Public Administration George Washington University September 2018

2 Big Infrastructure May Generate Big Returns Belt and Road Initiative Return concentrated near the road Near borders Near initially large places Kampala s Northern Bypass and proposed Bus Rapid Transit

3 Big Infrastructure May Generate Big Returns Belt and Road Initiative Return concentrated near the road Near borders Near initially large places Kampala s Northern Bypass and proposed Bus Rapid Transit We care about the geographic distribution of returns

4 Questions are Relevant in Any State of Development Container port investments in US, (Brooks, Gendron-Carrier, Rua, 2018) Returns concentrate near containerized ports Initally smaller places benefit more Railroads in India resdistribute wealth (Donaldson, 2018) Transportation networks determine city shape and size (Brooks and Lutz, forthcoming; Heblich, Redding and Sturm, 2018)

5 Linking Matt s Political Frame to Julia s and Mathilde s Investments General equilibrium analysis is critical for transportation A complete general equilibrium analysis should also include political support

6 If You Build It, They Will Come And Change Their Voting and Lobbying Behavior

7 If You Build It, They Will Come And Change Their Voting and Lobbying Behavior Infrastructure creates and redistributes wealth Et voila! A new vested interest

8 If You Build It, They Will Come And Change Their Voting and Lobbying Behavior Infrastructure creates and redistributes wealth Et voila! A new vested interest For example Current volume of US-China is predicated on container ports Regions that lose from trade are less supportive of trade in general and less receptive to immigration (Autor, Dorn, Hanson, Majlesi, 2017)

9 If You Build It, They Will Come And Change Their Voting and Lobbying Behavior Infrastructure creates and redistributes wealth Et voila! A new vested interest For example Current volume of US-China is predicated on container ports Regions that lose from trade are less supportive of trade in general and less receptive to immigration (Autor, Dorn, Hanson, Majlesi, 2017) Or at local airports Airlines who want more flights Residents who lobby for less noise

10 If You Build It, They Will Come And Change Their Voting and Lobbying Behavior Infrastructure creates and redistributes wealth Et voila! A new vested interest For example Current volume of US-China is predicated on container ports Regions that lose from trade are less supportive of trade in general and less receptive to immigration (Autor, Dorn, Hanson, Majlesi, 2017) Or at local airports Airlines who want more flights Residents who lobby for less noise Where does this go in a fancy general equilibrium model?

11 More Clearly Can Infrastructure Change the Rules of the Game? Can it create support for trade? Can it shift power from one region to another? Can it create a constituency for one kind of land use?

12 More Clearly Can Infrastructure Change the Rules of the Game? Can it create support for trade? Can it shift power from one region to another? Can it create a constituency for one kind of land use? In the long run, these changes may be larger and more impactful than the immediate economic impact

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