Dynamic Congestion and Urban Equilibrium
AbstractWe consider a monocentric city where a traffic bottleneck is located at the entrance of the central business district. The commuters' choices of the departure times from home, residential location, and lot size, are all endogenous. We show that elimination of queuing time under optimal road pricing induces individuals to spend more time at home and to have larger houses, causing urban sprawl. This is opposite to the typical results of urban models with static congestion, which predict cities to become denser with road pricing.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-137/VIII.
Date of creation: 10 Dec 2012
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dynamic traffic congestion; urban equilibrium; road pricing; bottleneck model; monocentric model;
Other versions of this item:
- Gubins, Sergejs & Verhoef, Erik T., 2014. "Dynamic bottleneck congestion and residential land use in the monocentric city," Journal of Urban Economics, Elsevier, vol. 80(C), pages 51-61.
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-TRE-2013-01-07 (Transport Economics)
- NEP-URE-2013-01-07 (Urban & Real Estate Economics)
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