Take the Q train: Value capture of public infrastructure projects

Transit infrastructure is a critical asset for economic activity yet costly to build in dense urban environments. We measure the benefit of Second Avenue Subway extension New York City, most expensive transit project recent memory, by analyzing local real estate prices which capitalize benefits spillovers. find 8% price increases, creating $5.5 billion new property value. Using cell phone ping data, we document substantial reductions commuting time especially among subway users, offering plausible mechanism gains. The increase reflects both higher rents and lower risk. Infrastructure improvements riskiness investments. Only 30% private value created captured through tax revenue, insufficient cover cost subway. Targeted increases may help governments capture more created, serve as useful funding tool.