Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2004-08-31
Number: 04-096/3
Author-Name: Morten Marott Larsen
Author-Email: ml@akf.dk
Author-Workplace-Name: University of Copenhagen and Institute of Local Government Studies
Author-Name: Ninette Pilegaard
Author-Workplace-Name: Danish Transport Research Institute, Lyngby
Author-Name: Jos van Ommeren
Author-Email: jommeren@feweb.vu.nl
Author-Workplace-Name: Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam
Title: Congestion and Residential Moving Behaviour
Abstract: In this paper we study how congestion and residential movingbehaviour are interrelated using a two-region job search model. Workerschoose optimally between interregional commuting and residential movingto live closer to the place of work. This choice affects the external costs ofcommuting due to congestion. The welfare maximizing road tax is derived.We demonstrate that road pricing may not only reduce congestion but alsoincrease total residential moving costs in the economy. One of the mainconsequences is that the road tax does not necessarily increase welfare.
Classification-JEL: R23; R41
Keywords: Congestion; Residential Moving and Job Search
File-Url: https://papers.tinbergen.nl/04096.pdf
File-Format: application/pdf
File-Size: 363661 bytes
Handle: RePEc:tin:wpaper:20040096