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Inefficiencies in regional commuting policy

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  • Toon Vandyck
  • Stef Proost

Abstract

This paper discusses investments in transport infrastructure and incentives for commuting taxes in a multiregional setting. We study the horizontal and vertical interactions between governments. We identify incentives for strategic and tax exporting behavior that might lead to underinvestment in transport infrastructure. Furthermore, we show that the intensity of the strategic behavior is affected by geographic firm ownership structure, the number of labor-supplying regions and the revenue-sharing mechanism in the federation. A numerical example applies the insights on commuting in Belgium.
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Suggested Citation

  • Toon Vandyck & Stef Proost, 2012. "Inefficiencies in regional commuting policy," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 659-689, August.
  • Handle: RePEc:bla:presci:v:91:y:2012:i:3:p:659-689
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    References listed on IDEAS

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    1. Borck, Rainald & Wrede, Matthias, 2008. "Commuting subsidies with two transport modes," Journal of Urban Economics, Elsevier, vol. 63(3), pages 841-848, May.
    2. Wrede, Matthias, 2001. "Should Commuting Expenses Be Tax Deductible? A Welfare Analysis," Journal of Urban Economics, Elsevier, vol. 49(1), pages 80-99, January.
    3. De Borger, B. & Proost, S. & Van Dender, K., 2005. "Congestion and tax competition in a parallel network," European Economic Review, Elsevier, vol. 49(8), pages 2013-2040, November.
    4. Bruno de Borger & Stef Proost, 2004. "Vertical and horizontal tax competition in the transport sector," Reflets et perspectives de la vie économique, De Boeck Université, pages 45-64.
    5. De Borger, B. & Dunkerley, F. & Proost, S., 2007. "Strategic investment and pricing decisions in a congested transport corridor," Journal of Urban Economics, Elsevier, pages 294-316.
    6. Bruno de Borger & Stef Proost, 2004. "Vertical and horizontal tax competition in the transport sector," Reflets et perspectives de la vie économique, De Boeck Université, pages 45-64.
    7. Parry, Ian & Bento, Antonio, 1999. "Revenue Recycling and the Welfare Effects of Road Pricing," Discussion Papers dp-99-45, Resources For the Future.
    8. Parry, Ian W H & Bento, Antonio, 2001. " Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, pages 645-671.
    9. Borck, Rainald & Wrede, Matthias, 2009. "Subsidies for intracity and intercity commuting," Journal of Urban Economics, Elsevier, pages 25-32.
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    Cited by:

    1. Angela Stefania Bergantino & Leonardo Madio, 2015. "The Travel-to-work. Which factors matter? An analysis on regional labor market in UK," ERSA conference papers ersa15p888, European Regional Science Association.
    2. De Borger, Bruno & Proost, Stef, 2015. "The political economy of public transport pricing and supply decisions," Economics of Transportation, Elsevier, pages 95-109.
    3. Bergantino, Angela Stefania & Madio, Leonardo, 2016. "Travel-to-work. Which factors matter? An analysis on regional labor markets in the Uk," Working Papers 16_1, SIET Società Italiana di Economia dei Trasporti e della Logistica.

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