Data and Code for "Spatial Externalities, Inefficiency, and Sufficient Statistics"

The paper set up a simple spatial model to quantify the economic inefficiency generated by spatial externalities such as agglomeration and congestion. Using this model, we compute the expression of optimal charges and deadweight loss. The expressions highlight the importance of two empirical objects, an externality matrix, and an equilibrium elasticity matrix, and clarify how specific model assumptions may constrain the magnitude of deadweight loss. Using data and the model from an experiment studying Peak Hour Congestion Pricing (Gabriel Kreindler, 2024, Econometrica), we illustrate the use of our spatial externality model by computing optimal charges and deadweight loss.