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Cities in Bad Shape: Urban Geometry in India Mariflavia Harari Discussant: Melanie Morten (Stanford) May 21, 2015

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Cities in Bad Shape: Urban Geometry in India

Mariflavia HarariDiscussant: Melanie Morten (Stanford)

May 21, 2015

Commuting around the world

Discussion Paper1 8 1 3 a

13

Commute Time in Brazil (1992-2009)

Chart 1 shows the average commute times (one-way trip) in Brazilian metropolitan areas plus the Federal District (FD) and compares them to other selected metropolitan areas around the world with over 2 million inhabitants. In general, commute times tend to be relatively long in Brazilian MAs, especially when their population size is taken into account.

CHART 1 Average time spent commuting to work in selected metropolitan areas in Brazil and other countries¹,²(In minutes)

10

20

30

40

50Sh

angh

ai

São

Paul

o

Rio

de J

anei

ro

Braz

ilian

MA

s

Lond

on

Stoc

khol

m

Reci

fe

Fede

ral D

istr

ict

New

Yor

k

Toky

o

Belo

Hor

izon

te

Sydn

ey

Salv

ador

Pari

s

Mad

rid

Toro

nto

Curi

tiba

Fort

alez

a

Berl

in

Belé

m

Mon

tréa

l

Chic

ago

Van

couv

er

Bost

on

San

Fran

cisc

o

Los

Ang

eles

Port

o A

legr

e

Sant

iago

Seat

tle

Mila

n

Barc

elon

a

Source: Brazil - National Household Sample Survey (PNAD/IBGE); Santiago (Chile) – data available at: <http://www.sectra.gob.cl>; data from all other metropolitan areas from Toronto Board of Trade (2012).

Notes: 1 Tokyo: 2005; Santiago and Europe: 2006; Brazil: 2009; Australia, Canada, Shanghai and USA: 2010.² Commute time data from Eurostat is available only at the regional level. However, the delimitation of these boundaries is not strictly defined and may vary greatly across European MAs. Data from the USA is based on Metropolitan Statistical Area.

5 COMPARING METROPOLITAN AREAS

In order to analyze how commute times have changed over the last two decades in Brazil, Chart 2 depicts the average time people spent commuting to work in the country and its largest metropolitan areas plus the Federal District (FD) between 1992 and 2009. Chart 2A draws attention to the stark differences between metropolitan areas (MAs) and non-metropolitan areas. In the year 2009, for instance, the average

Pereira and Schwanen (2012)

This paper

I Thinks about spatial equilibrium across cities

I Each city is a bundle of (homogenous):I WagesI AmenitiesI Rents

I Capture city size as an urban amenityI Commuting time

I Instrument for city size with Saiz (2010) -style instruments

Results consistent with city size being a negative amenity

I Predictions of model to a worsening in city shape, S (noagglomeration/congestion effects):

I Population decreases ( dNdS < 0) negative

I Wage indeterminate (depend on consumption/productionamenities) ( dw

dS ≥ / ≤ 0) positive

I Housing prices fall ( dpHdS < 0) negative, insig

I Suggestive evidence commuting mattersI Mitigated by road densityI Worsened by height restrictions

I Magnitude largeI 1 std dev. is 360 metres each way / 225km extra per yearI Implied cost is 5% of incomeI At walking speed, can get half way thereI Driving (including car costs): one quarter way there

What happens inside a city?

http://www.urbanobservatory.org/

Population density

Yellow high (30,000-150,000 people/sq. km)

http://www.urbanobservatory.org/

Commercial land

http://www.urbanobservatory.org/

Roads

http://www.urbanobservatory.org/

Commute times within a city differ

Discussion Paper1 8 1 3 a

19

Commute Time in Brazil (1992-2009)

CHART 5Commute time length among the 1st and 10th income deciles¹ – Brazilian metropolitan areas (2008-2009)²

5A – Average time lenght (In minutes)

5B – Share of commutes who travel to work for longer than one hour (one-way trip)(In %)

20 30 40 50

São Paulo

Rio de Janeiro

RMs

Distrito Federal

Belo Horizonte

Curitiba

Salvador

Fortaleza

Belém

Recife

Porto Alegre

0 10 20 30

São Paulo

Rio de Janeiro

MAs

Belo Horizonte

Federal District

Curitiba

Salvador

Fortaleza

Belém

Recife

Porto Alegre

Richest decile Average Poorest decile

Source: National Household Sample Survey (PNAD/IBGE).Notes:¹ Per-capita household income deciles.

² 2-year average.

Chart 5 also shows that this commute time gap between rich and poor is much larger in some metropolitan areas and almost non-existent in others. In Salvador, Recife Fortaleza and Belem, for instance, the commute time gap between rich and poor people is rather small despite the often markedly different capacities in terms of residential relocation and public transport dependence among the richest and poorest commuters. On the other hand, in the metropolitan areas of Belo Horizonte, Curitiba and in the Federal District journey-to-work trips are respectively 40%, 61% and 75% longer amongst the poorest decile compared to the richest one. From a research perspective, these observations reveal the need for future studies into the extent to which these commute time gaps between rich and poor can be explained as a result of spatial segregation and neighborhood accessibility in Brazilian MAs. Curitiba, for example, is a remarkable case that should be the object of further investigation. Despite Curitiba’s

Pereira and Schwanen (2012)

Is the most interesting variation across cities?

I Monocentric models capture the within-city rent gradientI e.g. Saiz (2010), allow for cost t for distance dI More general: Ahlfeldt et al. (2014)

I Yields housing supply equationI Derive average rent for the city based on the within-city rentI This will be a function of t, geo indicators.

I Are migrants getting the average housing?I Rent control- but further out?

I Should have rich within as well as across city predictions

Concluding thoughts

I City shape as an amenityI Affects commuting within the cityI Also possibly.... sanitation, electricity, trade

I Model focuses on between-city arbitrage, but should have richimplications for within-city

I Gradient of rent to commuting distanceI Can we benchmark these commuting costs with e.g. migration

costs between place?

I And: are developing countries different than developedcountries?

I Desmet et al. (2015) find income and population density lesscorrelated in low income places

I Other barriers to internal mobility/commuting within city

References

Ahlfeldt, G., Redding, S. J., Sturm, D., and Wolf, N. (2014). Theeconomics of density: Evidence from the Berlin Wall. pages1–45.

Desmet, K., Nagy, D. K., and Rossi-hansberg, E. (2015). TheGeography of Development : Evaluating Migration Restrictionsand Coastal Flooding. pages 1–54.

Pereira, R. H. M. and Schwanen, T. (2012). Commute Time inBrazil , 1992-2009 : Differences Between Metropolitan Areas ,By Income Levels and Gender. pages 1992–2009.

Saiz, A. (2010). The Geographic Determinants of Housing Supply.Quarterly Journal of Economics, 125(3):1253–1296.