THE EFFECT OF TRANSPORTATION SUBSIDIES ON URBAN SPRAWL*

Qing Su and Joseph S. DeSalvo

Journal of Regional Science, 2008, vol. 48, issue 3, 567-594

Abstract: ABSTRACT This paper provides theoretical and empirical analyses of the effect of transportation subsidies on urban sprawl in a two‐mode urban spatial model. Comparative static analysis shows, among other things, that the urban area contracts with a public transit subsidy but expands with an auto subsidy. The paper provides the first empirical test of these hypotheses and finds that the spatial size of the urbanized area shrinks with an increase in transit subsidies but increases at a decreasing rate with auto subsidies.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:bla:jregsc:v:48:y:2008:i:3:p:567-594

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