Pricing, Capacity Choice and Financing in Transportation Networks
This paper explores the inerrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically asks the following questions: (1) to what extent does the result apply under conditions of second-best pricing?; (2) which are the implications of having uncongested (e.g. rural) roads in a network?; and (3) what is the role of fixed (annual) taxes in this context? The paper develops a small network model, with endogenous car-ownership, in order to study these questions both from an analytical and a numerical viewpoint.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa03p41. 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: (Gunther Maier)
If references are entirely missing, you can add them using this form.