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Bottleneck congestion and residential location of heterogeneous commuters

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:juecon:v:100:y:2017:i:c:p:65-79 is not listed on IDEAS
    2. Jonathan D. Hall, 2017. "Improving the fit of structural models of congestion," Working Papers tecipa-590, University of Toronto, Department of Economics.
    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. repec:eee:juecon:v:105:y:2018:i:c:p:133-148 is not listed on IDEAS
    5. Xiaojuan Yu & Vincent van den Berg & Erik Verhoef, 2018. "Carpooling with heterogeneous users in the bottleneck model," Tinbergen Institute Discussion Papers 18-054/VIII, Tinbergen Institute.

    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

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