IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Congestion and residential moving behaviour

  • Larsen, Morten Marott
  • Pilegaard, Ninette
  • Ommeren, Jos Van

In this paper, we study how congestion and residential moving behaviour are interrelated, using a two-region job search model. Workers choose between interregional commuting and residential moving, in order to live closer to their place of work. This choice affects the external costs of commuting, due to congestion. We focus on the equilibrium in which some workers currently living in one region accept jobs in the other, with a fraction of them choosing to commute from their current residence to the new job in the other region and the remainder choosing to move to the region in which the new job is located. The welfare-maximising road tax is derived, which is essentially the Pigouvian tax, given the absence of a tax on moving. Given the presence of moving taxes, which are substantial in Europe, the optimal road tax for commuters is the Pigouvian tax plus the amortised value of the moving tax, evaluated at the first-best equilibrium. As a consequence, the road tax should be higher for commuters than for other travellers. Our numerical example demonstrates that the naive optimal road tax, which ignores the effect of the moving tax, is substantially below the optimal road tax.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B6V89-4SGD4M8-4/2/fc467a2da965f30e9cb2d102c6ea3bac
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 38 (2008)
Issue (Month): 4 (July)
Pages: 378-387

as
in new window

Handle: RePEc:eee:regeco:v:38:y:2008:i:4:p:378-387
Contact details of provider: Web page: http://www.elsevier.com/locate/regec

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Hamilton, Bruce W, 1982. "Wasteful Commuting," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1035-51, October.
  2. Bovenberg, A Lans & van der Ploeg, Frederick, 1992. "Environmental Policy, Public Finance and the Labour Market in a Second-best World," CEPR Discussion Papers 745, C.E.P.R. Discussion Papers.
  3. Anas, Alex & Xu, Rong, 1999. "Congestion, Land Use, and Job Dispersion: A General Equilibrium Model," Journal of Urban Economics, Elsevier, vol. 45(3), pages 451-473, May.
  4. Michiel van Leuvensteijn & J. van Ommeren, 2003. "New evidence of the effect of transaction costs on residential mobility," CPB Discussion Paper 18, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Boyce, David & Mattsson, Lars-Göran, 1999. "Modeling residential location choice in relation to housing location and road tolls on congested urban highway networks," Transportation Research Part B: Methodological, Elsevier, vol. 33(8), pages 581-591, November.
  6. Michiel van Leuvensteijn & Pierre Koning, 2006. "The Effect of Home-Ownership on Labour Mobility in the Netherlands," Chapters, in: Labour Market Adjustments in Europe, chapter 6 Edward Elgar.
  7. Lans Bovenberg, A. & de Mooij, Ruud A., 1994. "Environmental taxes and labor-market distortions," European Journal of Political Economy, Elsevier, vol. 10(4), pages 655-683, December.
  8. Jan Rouwendal & Erik Meijer, 2001. "Preferences for Housing, Jobs, and Commuting: A Mixed Logit Analysis," Journal of Regional Science, Wiley Blackwell, vol. 41(3), pages 475-505.
  9. Small, Kenneth A. & Song, Shunfeng, 1992. ""Wasteful" Commuting: A Resolution," University of California Transportation Center, Working Papers qt5142n2ts, University of California Transportation Center.
  10. Sims, David P., 2007. "Out of control: What can we learn from the end of Massachusetts rent control?," Journal of Urban Economics, Elsevier, vol. 61(1), pages 129-151, January.
  11. Munch, Jakob Roland & Rosholm, Michael & Svarer, Michael, . "Are Home Owners Really More Unemployed?," Economics Working Papers 2003-15, School of Economics and Management, University of Aarhus.
  12. Edward L. Glaeser & Erzo F. P. Luttmer, 2003. "The Misallocation of Housing Under Rent Control," American Economic Review, American Economic Association, vol. 93(4), pages 1027-1046, September.
  13. White, Michelle J, 1986. "Sex Differences in Urban Commuting Patterns," American Economic Review, American Economic Association, vol. 76(2), pages 368-72, May.
  14. Bovenberg, A.L. & de Mooij, R.A., 1994. "Environmental levies and distortionary taxation," Other publications TiSEM 4b32deaa-ec2f-4de7-b59b-9, Tilburg University, School of Economics and Management.
  15. Svarer, Michael & Rosholm, Michael & Munch, Jacob Roland, . "Rent Control and Unemployment Duration," Economics Working Papers 2003-11, School of Economics and Management, University of Aarhus.
  16. Erik T. Verhoef, 2000. "Second-Best Congestion Pricing in General Static Transportation Networks with Elastic Demands," Tinbergen Institute Discussion Papers 00-078/3, Tinbergen Institute.
  17. Parry, Ian & Bento, Antonio, 1999. "Revenue Recycling and the Welfare Effects of Road Pricing," Discussion Papers dp-99-45, Resources For the Future.
  18. Crane, Randall, 1996. "The Influence of Uncertain Job Location on Urban Form and the Journey to Work," Journal of Urban Economics, Elsevier, vol. 39(3), pages 342-356, May.
  19. Jonas Eliasson & Lars-Göran Mattsson, 2001. "Transport and Location Effects of Road Pricing: A Simulation Approach," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(3), pages 417-456, September.
  20. Zax, Jeffrey S. & Kain, John F., 1991. "Commutes, quits, and moves," Journal of Urban Economics, Elsevier, vol. 29(2), pages 153-165, March.
  21. Wrede, Matthias, 2001. "Should Commuting Expenses Be Tax Deductible? A Welfare Analysis," Journal of Urban Economics, Elsevier, vol. 49(1), pages 80-99, January.
  22. Krol, Robert & Svorny, Shirley, 2005. "The effect of rent control on commute times," Journal of Urban Economics, Elsevier, vol. 58(3), pages 421-436, November.
  23. Chan, Sewin, 2001. "Spatial Lock-in: Do Falling House Prices Constrain Residential Mobility?," Journal of Urban Economics, Elsevier, vol. 49(3), pages 567-586, May.
  24. Jos Van Ommeren & Joyce Dargay, 2006. "The Optimal Choice of Commuting Speed: Consequences for Commuting Time, Distance and Costs," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 40(2), pages 279-296, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:38:y:2008:i:4:p:378-387. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.