Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2012-12-10
Number: 12-137/VIII
Author-Name: Sergejs Gubins
Author-Workplace-Name: VU University Amsterdam
Author-Name: Erik T. Verhoef
Author-Workplace-Name: VU University Amsterdam
Title: Dynamic Congestion and Urban Equilibrium
Abstract: We consider a monocentric city where a traffic bottleneck is located at the entrance of the central business district. The commuters' choices of the departure times from home, residential location, and lot size, are all endogenous. We show that elimination of queuing time under optimal road pricing induces individuals to spend more time at home and to have larger houses, causing urban sprawl. This is opposite to the typical results of urban models with static congestion, which predict cities to become denser with road pricing.
Classification-JEL: D62, R21, R41, R48
Keywords: dynamic traffic congestion, urban equilibrium, road pricing, bottleneck model, monocentric model
File-Url: https://papers.tinbergen.nl/12137.pdf
File-Format: application/pdf
File-Size: 387993 bytes
Handle: RePEc:tin:wpaper:20120137