Loumeau, G. (2023). Locating Public Facilities: Theory and Micro Evidence from Paris Journal of Urban Economics, 135.
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Affiliated authorGabriel Loumeau
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Publication year2023
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JournalJournal of Urban Economics
This paper proposes a novel approach to evaluate location decisions for public facilities. The approach addresses, not only the standard distance-minimizing problem, but also the endogenous location decisions of individuals. The paper develops a quantifiable general equilibrium model with endogenous (residential and commercial) densities, housing prices, commutes to work, as well as to public/private facilities. The framework is applied to the case of secondary schools in Paris{\textquoteright} greater region at a 1km2 geographical scale. The analysis reveals that the observed location decisions made between 2001 and 2015 underestimate the endogenous reaction of individuals. A more decentralized strategy is predicted to increase welfare growth by 10 percent, reduce density in Paris{\textquoteright} center, and shorten commuting times to school globally.