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Voting on traffic congestion policy with two levels of government

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  • Russo, Antonio
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    Abstract

    I study how the political decision process affects urban traffic congestion policy. First, I look at the case of a single government deciding, through majority voting, on a monetary charge to be paid to drive to a city's Central Business District (CBD): if the majority of individuals prefers to drive more (resp. less) than the average, a voting equilibrium with lower (higher) charge emerges. Next, I consider the case of two government levels involved in traffic policy: parking charges in (resp. cordon tolls around) a city's CBD and capacity investments are chosen by a local (resp. regional) government, through a majority voting process. While tax exporting motives and the imperfect coordination among the two governments may lead to higher overall charges than in the case of a single government, strong preferences for driving across the population can still bring to an equilibiurm with suboptimal total charges.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 24776.

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    Date of creation: 06 Nov 2010
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    Handle: RePEc:pra:mprapa:24776

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    Related research

    Keywords: traffic congestion policy; cordon tolls; parking; voting; fiscal competition;

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    1. Richard Arnott & Eren Inci, 2005. "An Integrated Model of Downtown Parking and Traffic Congestion," Boston College Working Papers in Economics, Boston College Department of Economics 608, Boston College Department of Economics.
    2. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
    3. Parry, Ian, 2000. "Comparing the Efficiency of Alternative Policies for Reducing Traffic Congestion," Discussion Papers, Resources For the Future dp-00-28, Resources For the Future.
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