Sub-way or the Highway: The effects of transport infrastructure on the density of a city
Andrea Herrera Bórquez
Tesis, Magíster en Economía, IE-PUC, 2019
Abstract: This thesis studies the impacts of investments on urban highways and subway stations on a city’s structural density. I use data from Santiago, Chile, to analyze the effects of the inaugurations of six urban highways and several subway stations between 2001 and 2010 on built-up land. As treatment variables, I use the variation in a network-based accessibility index, which controls for the non-random location of transport infrastructure. Results show that inaugurations of subway stations decrease overall construction density in the neighboring areas by -0,75 percent. In contrast, the opening of urban highways increases square meters built by 1,72 percent. The effects of urban highways on residential and industrial land use are also positive and statistically significant, with coefficients of 1,64 and 1,55 percent. The interacted effect of both infrastructures on the overall construction, services, and commercial purposes suggests a crowding-out type of dynamic. At the same time, for residential and industrial land use purposes, this relation is positive, which indicates complementary dynamics of improvement in infrastructures.