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Endogenous vehicle-type choices in a monocentric city

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  • Kim, Jinwon

Abstract

Motivated by several empirical studies showing a positive relationship between residential density and vehicle fuel efficiency chosen by the residents, this paper presents a modified monocentric city model with endogenous vehicle-typechoices. Consumers are assumed to explicitly consider driving inconvenience in the choice of vehicle sizes, and the resulting commuting cost is a function of residential density. This vehicle-type choice problem is embedded in an otherwise standardmonocentric city model. A convenience-related advantage in less-dense areas makes our bid–rent curve flatter than that in the standard model. Comparative static analyses suggest that an increase in commuting cost per mile, especially from increasedunit cost of driving inconvenience, may induce spatial expansion of the city. Since driving inconvenience is lower in less-dense suburbs, the increased unit cost of driving inconvenience pulls people toward suburbs, potentially leading to urban sprawl. Part of comparative static analysis shows how the city's vehicle fuel efficiency depends on the city characteristics such as population and agricultural rent.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 42 (2012)
Issue (Month): 4 ()
Pages: 749-760

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Handle: RePEc:eee:regeco:v:42:y:2012:i:4:p:749-760

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Keywords: Monocentric city model; Vehicle fuel efficiency; Driving inconvenience; Urban sprawl;

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Cited by:
  1. Jos van Ommeren & Jesper de Groote & Giuliano Mingardo, 2013. "Residential Parking Permits and Parking Supply," Tinbergen Institute Discussion Papers 13-059/VIII, Tinbergen Institute.
  2. Jos van Ommeren & Jesper de Groote & Giuliano Mingardo, 2013. "Residential Parking Permits and Parking Supply," Tinbergen Institute Discussion Papers 13-059/VIII, Tinbergen Institute.
  3. van Ommeren, Jos & de Groote, Jesper & Mingardo, Giuliano, 2014. "Residential parking permits and parking supply," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 33-44.

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