Optimal facility placement and discriminatory congestion pricing in neighborhoods with different time costs
AbstractIn many urban areas, time costs or wages vary between neighborhoods, but there is little wage variation within a given neighborhood. Neighborhoods are often labelled "working class," "middle class," or even "wealthy." For this reason, there are many efficiency and distributional issues related to location because location largely determines access costs. Congestion also affects time costs and access. Many public policies are geared towards improving access for households in low-wage neighborhoods. Public facilities are built; some firms receive nonprofit status. In order to evaluate these policies, normative theory is needed. This paper develops theory on the optimal placement of facilities and their congestion prices in urban areas with wage variation between neighborhoods. The results show that optimal locations and prices depend on the extent of wage inequality.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal The Annals of Regional Science.
Volume (Year): 36 (2002)
Issue (Month): 2 ()
Note: Received: February 2001/Accepted: September 2001
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/00168/index.htm
More information through EDIRC
Find related papers by JEL classification:
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F Baum).
If references are entirely missing, you can add them using this form.