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Congestion and Residential Moving Behaviour

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  • Morten Marott Larsen

    ()
    (University of Copenhagen and Institute of Local Government Studies)

  • Ninette Pilegaard

    (Danish Transport Research Institute, Lyngby)

  • Jos van Ommeren

    ()
    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

In this paper we study how congestion and residential movingbehaviour are interrelated using a two-region job search model. Workerschoose optimally between interregional commuting and residential movingto live closer to the place of work. This choice affects the external costs ofcommuting due to congestion. The welfare maximizing road tax is derived.We demonstrate that road pricing may not only reduce congestion but alsoincrease total residential moving costs in the economy. One of the mainconsequences is that the road tax does not necessarily increase welfare.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-096/3.

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Date of creation: 31 Aug 2004
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Handle: RePEc:dgr:uvatin:20040096

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Keywords: Congestion; Residential Moving and Job Search;

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  2. Lans Bovenberg, A. & de Mooij, Ruud A., 1994. "Environmental taxes and labor-market distortions," European Journal of Political Economy, Elsevier, vol. 10(4), pages 655-683, December.
  3. Jos Van Ommeren & Michiel van Leuvensteijn, 2003. "New evidence of the effect of transaction costs on residential mobility," ERSA conference papers ersa03p7, European Regional Science Association.
  4. Bovenberg, A.L. & Mooij, R.A. de, 1994. "Environmental levies and distortionary taxation," Open Access publications from Tilburg University urn:nbn:nl:ui:12-152985, Tilburg University.
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  9. Jonas Eliasson & Lars-Göran Mattsson, 2001. "Transport and Location Effects of Road Pricing: A Simulation Approach," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(3), pages 417-456, September.
  10. Erik T. Verhoef, 1998. "Second-Best Congestion Pricing in General Static Transportation Networks with Elastic Demand," Tinbergen Institute Discussion Papers 98-086/3, Tinbergen Institute.
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  12. Bovenberg, A.L. & Ploeg, F. van der, 1992. "Environmental policy, public finance and the labour market in a second-best world," Discussion Paper 1992-43, Tilburg University, Center for Economic Research.
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Cited by:
  1. McArthur, D.P. & Thorsen, I. & Ubøe, J., 2012. "Labour market effects in assessing the costs and benefits of road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 310-321.
  2. Van Ommeren, Jos & Graaf-de Zijl, Marloes, 2013. "Estimating household demand for housing attributes in rent-controlled markets," Journal of Housing Economics, Elsevier, vol. 22(1), pages 11-19.

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