The suitability of hedonic models for cost-benefit analysis : evidence from commuting flows

A variety of methods have been developed which allow the estimation of benefits likely to arise from new transport infrastructure. In this paper, we concentrate on measuring commuting-related benefits. We compare and contrast two different approaches. The first relies on using data on commuting flows and the gravity model. The second approach uses the relationship between labour market accessibility and house prices. We use both methods to quantify these benefits, and discuss some of the potential reasons why they may give different estimates. We take as our case study a large infrastructure project in south-west Norway.