Abstract

This study examines possible effects of transportation conditions upon economic growth and geography. The paper proposes a model of economic growth with travel time and cost, housing, residential distribution, amenity, and endogenous time distribution amongst work, travel, and leisure. It deals with a dynamic interaction among capital accumulation, land use, housing market, environmental change, and transportation conditions in a linear economy. Although transportation systems are simple in this paper in the light of contemporary literature in transportation research, the paper demonstrates a way to integrating some important models in the literature in transportation research, economic growth theory and urban economics so that the significance of transportation systems upon economies can be properly analyzed.

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