Political Preferences and the Spatial Distribution of Infrastructure: Evidence from California's High-Speed Rail by Edouard Schaal

Join us for this weeks Macroeconomics Research Seminar, Summer Term 2024.

Edouard Schaal, from CREI (Centre de Recerca en Economia Internacional), Universitat Pompeu Fabra and the Barcelona School of Economics, will present this weeks Macroeconomics seminar on Political Preferences and the Spatial Distribution of Infrastructure: Evidence from California's High-Speed Rail.

Abstract

How do political preferences shape transportation policy? We study this question in the context of California's High-Speed Rail (CHSR). Combining geographic data on votes in a referendum on the CHSR with a model of its expected economic benefits, we estimate the weight of economic and non-economic considerations in voters' preferences. Then, comparing the proposed distribution of CHSR stations with alternative placements, we use a revealed-preference approach to estimate policymakers' preferences for redistribution and popular approval. While voters did respond to expected real-income benefits, non-economic factors were a more important driver of the spatial distribution of voters' preferences for the CHSR. While the voter approved CHSR would have led to modest income gains, proposals with net income losses also would have been approved due to political preferences. For the planner, we identify strong preferences for popular approval. A politically-blind planner would have placed the stations closer to dense metro areas in California.

This seminar will be held on campus in the Economics Common Room at 1.30pm on Tuesday 14th May 2024. This event is open to all levels of study and is also open to the public. To register your place, please contact the seminar organisers.

This event is part of the Macroeconomics Research Seminar Series.