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The Preferences of Voters Over Road Tolls and Road Capacity

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Author Info
Amihai Glazer () (Department of Economics, University of California-Irvine)
Stef Proost () (Faculty of Economics and Applied Economics, Catholic University of Leuven)

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Abstract

We consider a congestible road, where the cost of travel increases with the number of users on the road and decreases with capacity. Those persons who do not use the road favor a toll which would maximize revenue, and they oppose spending on road capacity. Users of the road prefer a low toll and a large capacity financed by general revenues. We describe conditions that make majority voting lead to a toll and capacity level that equals the socially optimal toll and capacity, that is smaller, or that is larger. This model can also explain the decrease over time of user fees for road use.

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Publisher Info
Paper provided by University of California-Irvine, Department of Economics in its series Working Papers with number 060712.

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Length: 18 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:irv:wpaper:060712

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Related research
Keywords: Positive analysis of policy-making and implementation; Externalities; Government policy on transportation;

Find related papers by JEL classification:
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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    Other versions:
  3. Niskanen, Esko, 1987. "Congestion tolls and consumer welfare," Transportation Research Part B: Methodological, Elsevier, vol. 21(2), pages 171-174, April. [Downloadable!] (restricted)
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  5. Persson, Torsten, 1998. "Economic Policy and Special Interest Politics," Economic Journal, Royal Economic Society, vol. 108(447), pages 310-27, March. [Downloadable!] (restricted)
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  7. Besley, Timothy J. & Rosen, Harvey S., 1998. "Vertical externalities in tax setting: evidence from gasoline and cigarettes," Journal of Public Economics, Elsevier, vol. 70(3), pages 383-398, December. [Downloadable!] (restricted)
    Other versions:
  8. Fredriksson, Per G. & Millimet, D.L.Daniel L., 2004. "Comparative politics and environmental taxation," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 705-722, July. [Downloadable!] (restricted)
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  10. De Meza, David & Gould, J R, 1987. "Free Access versus Private Property in a Resource: Income Distributions Compared," Journal of Political Economy, University of Chicago Press, vol. 95(6), pages 1317-25, December. [Downloadable!] (restricted)
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