IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/68940.html
   My bibliography  Save this paper

Bottleneck congestion and residential location of heterogeneous commuters

Author

Listed:
  • Takayama, Yuki
  • Kuwahara, Masao

Abstract

This study examines effects of bottleneck congestion and an optimal time-varying congestion toll on the spatial structure of cities. To this end, we develop a model in which heterogeneous commuters choose departure times from home and residential locations in a monocentric city with a bottleneck located between a central downtown and an adjacent suburb. We then show three properties of our model by analyzing equilibrium with and without congestion tolling. First, commuters with a higher value of travel time choose to live closer to their workplace. Second, congestion tolling causes population to increase in the suburb and generates urban sprawl. Third, commuters with a higher (lower) value of travel time gain (lose) from imposing the congestion toll without toll-revenue redistribution. Our findings are opposite to the standard results of traditional location models, which consider static traffic flow congestion, and differ fundamentally from the results obtained by Arnott (1998), who considers homogeneous commuters.

Suggested Citation

  • Takayama, Yuki & Kuwahara, Masao, 2016. "Bottleneck congestion and residential location of heterogeneous commuters," MPRA Paper 68940, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:68940
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/68940/1/MPRA_paper_68940.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/77214/9/MPRA_paper_77214.pdf
    File Function: revised version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/78901/16/MPRA_paper_78901.pdf
    File Function: revised version
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Brueckner, Jan K., 2007. "Urban growth boundaries: An effective second-best remedy for unpriced traffic congestion?," Journal of Housing Economics, Elsevier, vol. 16(3-4), pages 263-273, November.
    3. Wada, Kentaro & Akamatsu, Takashi, 2013. "A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 94-112.
    4. Alex Anas & Richard Arnott & Kenneth A. Small, 1998. "Urban Spatial Structure," Journal of Economic Literature, American Economic Association, vol. 36(3), pages 1426-1464, September.
    5. repec:wly:iecrev:v:58:y:2017:i::p:585-615 is not listed on IDEAS
    6. Gubins, Sergejs & Verhoef, Erik T., 2014. "Dynamic bottleneck congestion and residential land use in the monocentric city," Journal of Urban Economics, Elsevier, vol. 80(C), pages 51-61.
    7. Arnott, R. & de Palma, A. & Lindsey, R., 1990. "Departure time and route choice for the morning commute," Transportation Research Part B: Methodological, Elsevier, vol. 24(3), pages 209-228, June.
    8. Akamatsu, Takashi & Wada, Kentaro & Hayashi, Shunsuke, 2015. "The corridor problem with discrete multiple bottlenecks," Transportation Research Part B: Methodological, Elsevier, vol. 81(P3), pages 808-829.
    9. Mogens Fosgerau & Kenneth Small, 2017. "Endogenous Scheduling Preferences And Congestion," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 58, pages 585-615, May.
    10. Laih, Chen-Hsiu, 1994. "Queueing at a bottleneck with single- and multi-step tolls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(3), pages 197-208, May.
    11. Fosgerau, Mogens & Engelson, Leonid, 2011. "The value of travel time variance," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 1-8, January.
    12. Tseng, Yin-Yen & Verhoef, Erik T., 2008. "Value of time by time of day: A stated-preference study," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 607-618, August.
    13. 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.
    14. Robin Lindsey, C. & van den Berg, Vincent A.C. & Verhoef, Erik T., 2012. "Step tolling with bottleneck queuing congestion," Journal of Urban Economics, Elsevier, vol. 72(1), pages 46-59.
    15. Joshi, Kirti Kusum & Kono, Tatsuhito, 2009. "Optimization of floor area ratio regulation in a growing city," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 502-511, July.
    16. Kanemoto, Yoshitsugu, 1980. "Theories of urban externalities," MPRA Paper 24614, University Library of Munich, Germany.
    17. Anas, Alex & Rhee, Hyok-Joo, 2007. "When are urban growth boundaries not second-best policies to congestion tolls?," Journal of Urban Economics, Elsevier, vol. 61(2), pages 263-286, March.
    18. Fosgerau, Mogens & Lindsey, Robin, 2013. "Trip-timing decisions with traffic incidents," Regional Science and Urban Economics, Elsevier, vol. 43(5), pages 764-782.
    19. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    20. Peer, Stefanie & Verhoef, Erik T., 2013. "Equilibrium at a bottleneck when long-run and short-run scheduling preferences diverge," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 12-27.
    21. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
    22. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1992. "Route choice with heterogeneous drivers and group-specific congestion costs," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 71-102, March.
    23. van den Berg, Vincent & Verhoef, Erik T., 2011. "Winning or losing from dynamic bottleneck congestion pricing?: The distributional effects of road pricing with heterogeneity in values of time and schedule delay," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 983-992, August.
    24. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January.
    25. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    26. Kono, Tatsuhito & Joshi, Kirti Kusum & Kato, Takeaki & Yokoi, Takahisa, 2012. "Optimal regulation on building size and city boundary: An effective second-best remedy for traffic congestion externality," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 619-630.
    27. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    28. McCann, Philip, 2013. "Modern Urban and Regional Economics," OUP Catalogue, Oxford University Press, edition 2, number 9780199582006.
    29. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444.
    30. Chen-Hsiu Laih, 2004. "Effects of the optimal step toll scheme on equilibrium commuter behaviour," Applied Economics, Taylor & Francis Journals, vol. 36(1), pages 59-81.
    31. Pines, David & Kono, Tatsuhito, 2012. "FAR regulations and unpriced transport congestion," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 931-937.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jonathan D. Hall, 2017. "Improving the fit of structural models of congestion," Working Papers tecipa-590, University of Toronto, Department of Economics.

    More about this item

    Keywords

    bottleneck congestion; residential location; congestion toll; urban sprawl;

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:68940. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.