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Dynamic bottleneck congestion and residential land use in the monocentric city

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  • Gubins, Sergejs
  • Verhoef, Erik T.

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:juecon:v:80:y:2014:i:c:p:51-61
    DOI: 10.1016/j.jue.2013.09.001
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    More about this item

    Keywords

    Bottleneck model; Monocentric model; Road pricing; Congestion; Urban sprawl;
    All these keywords.

    JEL classification:

    • 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; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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