Three essays on the economic value of the geographic proximity

Abstract

This thesis investigates how geographic proximity is economically valued in cities, focusing on the forces of agglomeration economies and the spatial interactions they generate. Drawing on theories from urban economics, urban planning, and transport geography, and applying them to Brazil’s two largest metropolitan areas, the research examines how shocks to transport networks and access to consumer markets reshape locational choices, travel behavior, and the spatial distribution of opportunities. The thesis is structured in three essays. Essay 1 reviews and synthesizes the literatures on urban accessibility, agglomeration economies, travel behavior, and spatial interaction models. This cross-fertilized review shows how recent advances in quantitative spatial models integrate these fields to explain how transport infrastructure and the spatial distribution of amenities influence welfare and urban inequality. Essay 2 provides empirical evidence on the relationship between land use and transport connectivity by exploiting the expansion of São Paulo’s mass public transit network between 2007 and 2017. Using fine-grained spatial data and a refined station catchment area approach, the study demonstrates that improvements in speed and accessibility drive shifts from private car use to rail-based transit. It also shows that land-use, alongside transport connectivity, is critical to shift travel behavior, underscoring the need for integrated transport and land-use policies. Essay 3 examines the impact of the short-term rental platform Airbnb on local labor markets in Rio de Janeiro between 2010 and 2019. Through an econometric design with instrumental variables and highly disaggregated spatial data, the analysis finds that Airbnb’s expansion boosted employment and wages in the gastronomy sector, while other sectors—including hotels—showed no measurable effects. This investigation provides the first evidence for a developing country city of how digital platforms can reshape urban economic geography through localized agglomeration effects. Taken together, the findings highlight the central role of access to amenities and transport networks in shaping the spatial organization of cities. They show that fine-grained spatial interactions matter for understanding the sustainability of urban systems and the distribution of opportunities. The thesis offers reflections on the role of transport–land use integration in cities and provides new empirical evidence on shocks to urban infrastructure in Brazil, with particular emphasis on public transport and the entry of digital platforms.