Subsidies for intracity and intercity commuting

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Subsidies for Intracity and Intercity Commuting Abstract This paper analyzes subsidies for intracity and intercity commuting in an urban economics framework with two cities and agglomeration externalities, where workers may commute within and between cities. First, commuting subsidies serve to internalize agglomeration externalities: Intracity commuting subsidies give incentives to move to the larger city and intercity commuting subsidies make residents of the periphery commute to the core. Second, if agglomeration rents are locally captured, commuting subsidies act as a welfare enhancing transfer from the core to the periphery. Terms of use: Documents in EconStor mayJEL Code: R14, R48.

How to make the metropolitan area work? Neither big government, nor laissez-faire

“…It should be clear that subsidizing cross-border commuters may serve to boost the productivity of the MA by fostering a better exploitation of agglomeration economies (Borck and Wrede, 2009). However, in a politically fragmented MA, it is not clear how such subsidies may be …nanced.…”

Economic and Environmental Effects of Public Transport Subsidy Policies: a Spatial CGE Model of Beijing

“…Accordingly, Zenou [20] noted that different subsidies had varied effects on alleviating the job-housing imbalance among low-income groups. Borck and Wrede [21] argued that transport subsidies could reduce the distortions of residents' employment decisions caused by payroll taxes and internalize the externality of the employment area, resulting in more efficient labor allocation. The abovementioned studies considered both the labor market and job-housing location choices.…”

The distributional effect of commuting subsidies - Evidence from geo-referenced data and a large-scale policy reform

“…Wrede (2003), Borck and Wrede (2005) and Richter (2006) provide theoretical contributions on how to design commuting subsidies to be efficient. The only papers considering the efficiency of the Germany's governmental commuting subsidy empirically (Weiss (2009) and Boehm (2013)) both provide evidence for commuting subsidies being efficient.…”