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Endogenous Vehicle-Type Choices in a Monocentric City

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  • Kim, Jinwon

Abstract

Motivated by several empirical studies showing a positive relationship between residential density and vehicle fuel efficiency chosen by the residents, this paper presents a modified monocentric city model with endogenous vehicle-type choices. Consumers are assumed to explicitly consider driving inconvenience in the choice of vehicle sizes, and the resulting commuting cost is a function of residential density. This vehicle-type choice problem is embedded in an otherwise standard monocentric city model. A convenience-related advantage in less-dense areas makes our bid-rent curve flatter than that in the standard model. Comparative static analyses suggest that an increase in commuting cost per mile, especially from increased unit cost of driving inconvenience, may induce spatial expansion of the city. Since driving inconvenience is lower in less-dense suburbs, the increased unit cost of driving inconvenience pulls people toward suburbs, potentially leading to urban sprawl. Part of comparative static analysis shows how the city's vehicle fuel efficiency depends on the city characteristics such as population and agricultural rent.

Suggested Citation

  • Kim, Jinwon, 2012. "Endogenous Vehicle-Type Choices in a Monocentric City," MPRA Paper 47589, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:47589
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    Cited by:

    1. Kim, Jinwon, 2016. "Vehicle fuel-efficiency choices, emission externalities, and urban sprawl," Economics of Transportation, Elsevier, vol. 5(C), pages 24-36.
    2. van Ommeren, Jos & de Groote, Jesper & Mingardo, Giuliano, 2014. "Residential parking permits and parking supply," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 33-44.

    More about this item

    Keywords

    Monocentric City Model; Vehicle Fuel Efficiency; Driving Inconvenience; Urban Sprawl;

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • 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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