Land use, worker heterogeneity and welfare benefits of public goods (2018)

Coen Teulings, Ioulia Ossokina & Henri de Groot, Journal of Urban Economics 103: 67-82

We show that investments in public goods change the optimal land use in their vicinity, leading to additional welfare benefits. This occurs through two sorting mechanisms. First, availability of public goods leads to higher population densities. Second, population groups sort according to their preferences for public goods. We develop a structural spatial general equilibrium model that accounts for these effects. The model is estimated using data on transport infrastructure, commuting behavior, land use and land rents for some 3000 ZIP-codes in the Netherlands and for three levels of education. Welfare benefits of investments in public transport infrastructure are shown to differ sharply by workers' educational attainment. Welfare gains from changes in land use account for up to 30% of the total benefits of a transport investment.


Spatial effects of automated driving: dispersion, concentration or both? (2017).

George Gelauff, Ioulia Ossokina, Coen Teulings, discussion paper, submitted

We study possible effects of automated driving on where people live and on the land prices. We perform simulations with the Dutch spatial equilibrium model LUCA. Two possible effects of automation are accounted for: (i) self-driving cars allow drivers to use their time in the car more productively; (ii) self-driving public transport offers faster and more comfortable door-to-door transfers than traditional busses, trams and metro. More productive time use during car trips results in population flight from cities. Residential prices converge: they fall in cities and rise in non-urban areas. The efficiency gain in public transport has an opposite effect. It leads to further population clustering in urban areas and an increase in residential price disparity between cities and rural areas. When combined, these two components lead to a concentration of the population in the largest most attractive cities and their suburbs at the cost of smaller cities and non-urban regions.


The urban economics of retail (2017).

Coen Teulings, Ioulia Ossokina & Jan Svitak, discussion paper.

We show empirically that urban shopping areas have a pronounced centre where the rents are the highest, and a negative rent gradient. With every 100 metre distance rents fall, on average, by 15 percent. We use this insight to build a simple theoretical model. The model predicts that rents and occupancy rates on the edges of shopping areas are most sensitive to changes in economic conditions. Demand shocks may lead to transformations between retail and residential land use, mostly at the edge, and to a contraction or expansion of shopping areas. The model predictions are tested on unique data on the location and characteristics of all retail and non-retail properties within 300 largest shopping areas in the Netherlands in 2004-2014, a period including the Great Recession.


Urban traffic externalities (2015).

Ioulia Ossokina and Gerard Verweij. Regional science and urban economics, 55, 1-13.

We show that the new bypass N14 near The Hague led to environmental benefits by reducing traffic nuisance on local streets. We combine a quasi-experiment and a fixed effect hedonic price model to estimate how housing demand and housing prices in the neighborhood of the highway reacted to these changes. We find that a 50% lower traffic density induced some 3000 euro increase in housing prices on average. Residents did not foresee this change in advance however.


Adoption subsidy versus technology standards (2008).

Ioulia Ossokina and Otto Swank. De Economist, 156 (3), 241-267.


Cost-benefit analysis of a railway station area development (2008).

Carel Eijgenraam and Ioulia Ossokina. In Bruinsma, F., Pels, E. and H. Priemus (eds.), Railway development: Impact on urban dynamics, pp. 191-211, Physica-Verlag.


The optimal degree of polarization (2004).

Ioulia Ossokina and Otto Swank. European Journal of Political Economy, 20, 255-262.


Polarization, political instability and active learning (2003).

Ioulia Ossokina and Otto Swank. Scandinavian Journal of Economics, 105(1), 1-14.