 Endogenous vehicle-type choices in a monocentric cityRegional Science and Urban Economics, 2012, vol. 42, issue 4, 749-760 Abstract: Motivated by several empirical studies showing a positive relationship between residential density and vehicle fuel efficiency chosen by the residents, this paper presents a modified monocentric city model with endogenous vehicle-typechoices. Consumers are assumed to explicitly consider driving inconvenience in the choice of vehicle sizes, and the resulting commuting cost is a function of residential density. This vehicle-type choice problem is embedded in an otherwise standardmonocentric city model. A convenience-related advantage in less-dense areas makes our bid–rent curve flatter than that in the standard model. Comparative static analyses suggest that an increase in commuting cost per mile, especially from increasedunit cost of driving inconvenience, may induce spatial expansion of the city. Since driving inconvenience is lower in less-dense suburbs, the increased unit cost of driving inconvenience pulls people toward suburbs, potentially leading to urban sprawl. Part of comparative static analysis shows how the city's vehicle fuel efficiency depends on the city characteristics such as population and agricultural rent. Keywords: Monocentric city model; Vehicle fuel efficiency; Driving inconvenience; Urban sprawl (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:749-760 DOI: 10.1016/j.regsciurbeco.2012.05.005 Access Statistics for this article Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou More articles in Regional Science and Urban Economics from Elsevier |
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