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Flextime, Traffic Congestion and Urban Productivity

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  • Se-il Mun
  • Makoto Yonekawa

Abstract

How many firms choose to adopt flextime without any policy intervention? Does promoting flextime improve social welfare? This paper addresses these two questions. We extend the model of bottleneck congestion to describe the case in which some firms in a city adopt flextime. The model also incorporates effects on urban productivity via agglomeration economy. Each firm chooses whether to adopt flextime or not, taking into account the trade-off between productivity and congestion. Equilibrium determines the number of firms adopting flextime and commuters' departure patterns. We investigate the conditions in which flextime is adopted in equilibrium. Moreover, we demonstrate that multiple equilibria with respect to the number of firms adopting flextime may arise. The less efficient solution, the one without flextime, is likely to persist. We also examine the effect of a congestion toll on social welfare. © 2006 LSE and the University of Bath

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  • Se-il Mun & Makoto Yonekawa, 2006. "Flextime, Traffic Congestion and Urban Productivity," Journal of Transport Economics and Policy, University of Bath, vol. 40(3), pages 329-358, September.
  • Handle: RePEc:tpe:jtecpo:v:40:y:2006:i:3:p:329-358
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    1. repec:eee:juecon:v:100:y:2017:i:c:p:65-79 is not listed on IDEAS
    2. repec:eee:transb:v:104:y:2017:i:c:p:215-237 is not listed on IDEAS
    3. Takayama, Yuki & Kuwahara, Masao, 2017. "Bottleneck congestion and residential location of heterogeneous commuters," Journal of Urban Economics, Elsevier, vol. 100(C), pages 65-79.
    4. Eva Gutiérrez-i-Puigarnau & Jos N. Van Ommeren, 2012. "Start Time and Worker Compensation Implications for Staggered-Hours Programmes," Journal of Transport Economics and Policy, University of Bath, vol. 46(2), pages 205-220, May.
    5. Takayama, Yuki, 2015. "Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 830-847.
    6. Ramadurai, Gitakrishnan & Ukkusuri, Satish V. & Zhao, Jinye & Pang, Jong-Shi, 2010. "Linear complementarity formulation for single bottleneck model with heterogeneous commuters," Transportation Research Part B: Methodological, Elsevier, vol. 44(2), pages 193-214, February.
    7. Wilfredo Yushimito & Xuegang Ban & José Holguín-Veras, 2015. "Correcting the Market Failure in Work Trips with Work Rescheduling: An Analysis Using Bi-level Models for the Firm-workers Interplay," Networks and Spatial Economics, Springer, vol. 15(3), pages 883-915, September.
    8. Hugo Emilio Silva & Robin Lindsey & André de Palma & Vincent A.C. van den Berg, 2014. "On the Existence and Uniqueness of Equilibrium in the Bottleneck Model with Atomic Users," Tinbergen Institute Discussion Papers 14-077/VIII, Tinbergen Institute.

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