Pricing of Transport Networks, Redistribution and Optimal Taxation

Antonio Russo

No 12-353, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: We study optimal pricing of roads and public transport in presence of nonlinear in- come taxation. Individuals are heterogeneous in unobservable earning ability. Optimal transport tarifs depend on time costs of travel and work schedule adjustments (days and hours worked per day) as a response to commuting costs. We find that discounts for low income individuals are optimal only if the time cost of a trip is small enough. Lower travel time costs facilitate screening: therefore, redistribution provides an additional motive for congestion pricing. Finally, we investigate the desirability of means-testing of transport tarifs.

Keywords: road pricing; public transport pricing; income taxation; meanstesting (search for similar items in EconPapers)
JEL-codes: H21 H23 R41 (search for similar items in EconPapers)
Date: 2012-11
New Economics Papers: this item is included in nep-pbe, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Pricing of Transport Networks, Redistribution, and Optimal Taxation (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:25766

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