Project description
An innovative study of urban economics
Between and within countries, there are significant divergences in economic activity. Within countries, there are differences between cities and rural areas. The arrival of data with a high level of spatial resolution for cities has encouraged the study of the economics of cities. The EU-funded COMMUTE project will advance our understanding of the economics of cities with four innovations in order to assess the benefits of improvements in urban transport infrastructure and the effects of planning interventions on the development and welfare of cities. The project will combine quantitative urban models with extraordinarily detailed register data covering every person in Denmark and develop a dynamic version of the current static models.
Objective
One of the most striking empirical regularities is the huge divergence in economic activity both across and within countries. Within countries, this is most clearly illustrated by the vast differences in economic activity between cities and rural areas. Despite this first-order economic phenomenon, the study of the economics of cities has been a niche interest for much of the 20th century. This has changed recently with the arrival of data with a high level of spatial resolution for cities and key theoretical breakthroughs. In particular, Ahlfeldt, Redding, Sturm and Wolf (2015) and Heblich, Redding and Sturm (2020) develop an empirically tractable model of location choices in cities. They show how this model can be used to estimate the strength of agglomeration forces in cities and the effect of the construction of the railways on commuting flows and city growth.
This project will take our understanding of the economics of cities to the next level by innovating along four different dimensions. First, the project will combine quantitative urban models that build on my prior work with extraordinary detailed register data covering every person in Denmark. Second, the project will develop a dynamic version of the current static models and structurally estimate this model with the information available in the Danish data. Third, the rich heterogeneity that can be observed in the Danish register data will make it possible to innovate on the current state of the art, which assumes ex-ante identical workers and a single output, and allow for worker and firm heterogeneity. Fourth, the modelling and empirical work will directly address questions of first-order policy relevance. These questions include evaluating the general equilibrium benefits of improvements in urban transport infrastructure, and the effect of height restrictions and other planning interventions on the growth and welfare of cities.
Keywords
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
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H2020-EU.1.1. - EXCELLENT SCIENCE - European Research Council (ERC)
MAIN PROGRAMME
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Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
ERC-ADG - Advanced Grant
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Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2020-ADG
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Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
WC2A 2AE London
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.