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Regional Economic Impacts of the Øresund Cross-Border Fixed Link: Cui Bono?

Author

Listed:
  • Michael Funke
  • Kadri Männasoo
  • Helery Tasane

Abstract

Recently, there has been a growing interest in newly developed econometric tools to conduct counterfactual analysis when a treated unit experiences a policy intervention, and an artificial control group has to be constructed. Adopting novel penalized synthetic control methods, we quantify the causal impact of the multi-modal Øresund fixed link on the adjacent cross-border regions in Skåne and Zealand. The treatment impacts on the intertwining metropolitan regions of Copenhagen and Malmö are positive. However, the impact on the Copenhagen metropolitan area is overlaid by the Great Belt strait fixed link, which was opened shortly before. An array of robustness tests supports our interpretations, and several appendices supplement the presentation in the paper.

Suggested Citation

  • Michael Funke & Kadri Männasoo & Helery Tasane, 2023. "Regional Economic Impacts of the Øresund Cross-Border Fixed Link: Cui Bono?," CESifo Working Paper Series 10557, CESifo.
    • Handle: RePEc:ces:ceswps:_10557
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    References listed on IDEAS

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    More about this item

    Keywords

    Øresund fixed link; cities; infrastructure; economic development; synthetic control method;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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