TY  - SER
AU  -  Oliveira, Jaqueline
AU  - Morten, Melanie
TI  - The Effects of Roads on Trade and Migration: Evidence from a Planned Capital City
SN  - 1945-7782
PB  - American Economic Journal: Applied Economics
KW  -  Housing
KW  -  Infrastructure, Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration
KW  -  National Government Expenditures and Related Policies: Infrastructures
KW  -  Regional Labor Markets
KW  - Economics
KW  - Population
N2  - A large body of literature studies how infrastructure facilitates trade. We ask whether infrastructure also facilitates migration. Using a general equilibrium trade model and rich spatial data, we study the impact of a large, plausibly exogenous shock to highways in Brazil on both goods and labor markets. We find the highway system increased welfare by 2.8 percent, of which 76 percent was due to reduced trade costs and 24 percent to reduced migration costs. An implication of costly migration is spatial heterogeneity in benefits: the range of welfare improvement is 1 to 15 percent, as opposed to uniform gains with perfect mobility
UR  - https://www.aeaweb.org/articles?id=10.1257/app.20180487
ER  -