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Subsidies for Intracity and Intercity Commuting

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Author Info
Rainald Borck ()
Matthias Wrede ()

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Abstract

This paper analyzes subsidies for intracity and intercity commuting in an urban economics framework with two cities and agglomeration externalities, where workers may commute within and between cities. First, commuting subsidies serve to internalize agglomeration externalities: Intracity commuting subsidies give incentives to move to the larger city and intercity commuting subsidies make residents of the periphery commute to the core. Second, if agglomeration rents are locally captured, commuting subsidies act as a welfare enhancing transfer from the core to the periphery.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2321.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2321

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Related research
Keywords: commuting subsidies; agglomeration externalities; intercity and intracity commuting;

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Find related papers by JEL classification:
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns
R48 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government Pricing; Regulatory Policies

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Richard J. Arnott & Joseph E. Stiglitz, 1981. "Aggregate Land Rents and Aggregate Transport Costs," NBER Working Papers 0523, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Abdel-Rahman, Hesham M. & Anas, Alex, 2004. "Theories of systems of cities," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 52, pages 2293-2339 Elsevier. [Downloadable!] (restricted)
    Other versions:
  3. Richard Arnott, 2007. "Congestion Tolling with Agglomeration Externalities," Boston College Working Papers in Economics 660, Boston College Department of Economics. [Downloadable!]
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eva Gutiérrez-i-Puigarnau & Jos van Ommeren, 2009. "Labour Supply and Commuting," SOEPpapers 222, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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This page was last updated on 2009-12-1.

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