Abstract
This paper studies the interaction between dynamic traffic congestion and urban spatial equilibrium, using a model that is a straight unification of the Vickrey (1969) bottleneck congestion model and the Alonso (1964) monocentric city model. In a monocentric city with a bottleneck at the entrance to the CBD, residents choose their commute departure time jointly with residential location and housing consumption. Commuters arrive at the bottleneck in sequence sorted by residential location, so that more distant residents arrive later. The socially optimal toll makes central residents commute earlier in the morning than they would without the toll, which in turn induces a city that is less dense in the center and more dense further out. This is the opposite effect of what is found in models with static congestion.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
