Impacts of Public Transport Policy on City Size and Welfare

Walid Chatti (), Bassem Ben Soltane and Turki Abalala
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Bassem Ben Soltane: King Abdulaziz University
Turki Abalala: King Abdulaziz University

Networks and Spatial Economics, 2019, vol. 19, issue 4, No 4, 1097-1122

Abstract: Abstract This paper introduces a clear distinction between interregional and intraregional transportation cost in a mixed New Economic Geography and Urban Economics model (Krugman and Livas Elizondo 1996; Martin and Rogers 1995). With the assumptions that public spending on transport infrastructure has some different effects on city size and welfare, and that it is financed by a proportional tax on regional income, an absence of regulation enables productive activities to agglomerate in the most favored region. Considering the presence of urban costs (e.g. commuting costs and land rents), public transport policy for developed countries can be used as a strategic instrument for regional planning, leading to a decrease in the spatial size of cities.

Keywords: Economic geography; Urban costs; Transportation; Public policy; Welfare (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11067-019-09451-y

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