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Rush hours and urbanization

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  • Seidel, Tobias
  • Wickerath, Jan

Abstract

We use a quantitative spatial general equilibrium model with potential commuting of workers to analyze the effects of rush hours on the spatial allocation of employment and population, the housing market, average labor productivity and welfare. We construct a measure of traffic congestion based on commuting time data for German districts in 2018 and use the model to quantify efficiency and welfare costs of rush hours. Reducing time lost in traffic by 50 percent raises the urbanization rate by 3.7 percentage points, average labor productivity by 0.8 percent and welfare by 3.5 percent. We also compare the role of commuting costs and housing markets as two major congestion forces with regard to urbanization, productivity, and welfare.

Suggested Citation

  • Seidel, Tobias & Wickerath, Jan, 2020. "Rush hours and urbanization," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:regeco:v:85:y:2020:i:c:s0166046220302659
    DOI: 10.1016/j.regsciurbeco.2020.103580
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    Cited by:

    1. Oliver Krebs, 2018. "RIOTs in Germany – Constructing an interregional input-output table for Germany," Working Papers 182, Bavarian Graduate Program in Economics (BGPE).
    2. Ahlfeldt, Gabriel M. & Heblich, Stephan & Seidel, Tobias, 2023. "Micro-geographic property price and rent indices," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    3. Krebs, Oliver & Pflüger, Michael P., 2019. "On the Road (Again): Commuting and Local Employment Elasticities in Germany," IZA Discussion Papers 12257, Institute of Labor Economics (IZA).
    4. Krebs, Oliver & Pflüger, Michael, 2023. "On the road (again): Commuting and local employment elasticities in Germany," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    5. Ahlfeldt, Gabriel M. & Gobillon, Laurent, 2021. "Introduction to the Special issue: “Emerging Trends in Urban Economics”," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    6. Yang, Xiaozhong & Zhang, Cheng, 2022. "Spatial investments in the real estate industry: Based on the population flow within the city," Journal of Business Research, Elsevier, vol. 140(C), pages 593-603.

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    More about this item

    Keywords

    Urbanization; Commuting; Traffic; Congestion; Housing market; Spatial general equilibrium;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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