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Dynamic bottleneck congestion and residential land use in the monocentric city

  • Gubins, Sergejs
  • Verhoef, Erik T.

We consider a monocentric city where a traffic bottleneck is located at the entrance of the central business district. The commuters’ departure times from home, residential locations, and lot sizes, 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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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 80 (2014)
Issue (Month): C ()
Pages: 51-61

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Handle: RePEc:eee:juecon:v:80:y:2014:i:c:p:51-61
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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  14. Wildasin, David E., 1986. "Spatial variation of the marginal utility of income and unequal treatment of equals," Journal of Urban Economics, Elsevier, vol. 19(1), pages 125-129, January.
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