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Dynamic bottleneck congestion and residential land use in the monocentric city

Sergejs Gubins and Erik Verhoef ()

Journal of Urban Economics, 2014, vol. 80, issue C, 51-61

Abstract: We consider a monocentric city where a traffic bottleneck is located at the entrance of the central business district. The commuters’ departure times from home, residential locations, and lot sizes, 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.

Keywords: Bottleneck model; Monocentric model; Road pricing; Congestion; Urban sprawl (search for similar items in EconPapers)
JEL-codes: D62 R21 R41 R48 (search for similar items in EconPapers)
Date: 2014
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