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Zoning in cities with traffic congestion and agglomeration economies

Author

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  • Rhee, Hyok-Joo
  • Yu, Sanggyun
  • Hirte, Georg

Abstract

We analyze land use regulations in cities with traffic congestion and production spillovers. Land is allocated between residential and industrial uses inside the city boundary or between urban and rural uses at the city boundary. The production is dispersed over the city, and people and firms freely choose locations of residence and production. We derive conditions for optimally adjusting land uses expressed in terms of observable data, and modify and extend the findings of the literature. According to numerical simulations, the land use control combined with production subsidy is almost as efficient as the first-best policy mix.

Suggested Citation

  • Rhee, Hyok-Joo & Yu, Sanggyun & Hirte, Georg, 2014. "Zoning in cities with traffic congestion and agglomeration economies," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 82-93.
  • Handle: RePEc:eee:regeco:v:44:y:2014:i:c:p:82-93
    DOI: 10.1016/j.regsciurbeco.2013.12.002
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    Cited by:

    1. Ioannis Tikoudis, 2015. "Congestion Pricing in Urban Polycentric Networks with Distorted Labor Markets: A Spatial General Equilibrium Model for the Area Randstad," Tinbergen Institute Discussion Papers 15-085/VIII, Tinbergen Institute, revised 26 Oct 2017.
    2. Agarwal, Sumit & Koo, Kang Mo & Sing, Tien Foo, 2015. "Impact of electronic road pricing on real estate prices in Singapore," Journal of Urban Economics, Elsevier, vol. 90(C), pages 50-59.
    3. Hirte, Georg & Rhee, Hyok-Joo, 2016. "Regulation versus Taxation," CEPIE Working Papers 05/16, Technische Universit├Ąt Dresden, Center of Public and International Economics (CEPIE).
    4. Georg Hirte & Stefan Tscharaktschiew, 2015. "Why not to choose the most convenient labor supply model? The impact of labor supply modeling on policy evaluation," ERSA conference papers ersa15p303, European Regional Science Association.

    More about this item

    Keywords

    Zoning; Traffic congestion; Agglomeration economies; Nonmonocentric city; Efficiency;

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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