Transport Costs in a Multiregional Equilibrium Job Search Model

Morten Marott Larsen, Ninette Pilegaard and Jos Ommeren
Additional contact information
Morten Marott Larsen: AKF
Ninette Pilegaard: Danish Transport Research Institute
Jos Ommeren: VU University

Chapter 8 in Road Pricing, the Economy and the Environment, 2008, pp 133-166 from Springer

Abstract: Abstract In this chapter, we introduce a multiregional equilibrium job search model to analyse the economic effects of intraregional and interregional transport cost changes. The key assumption is that unemployed job seekers and firms with vacancies have to search for each other. The regional unemployment and vacancy equilibrium rates, as well as the wage levels, are endogenously determined. According to the model, decreases in interregional transport costs tend to reduce local and national unemployment and increase vacancies. Model simulations indicate that wages are less sensitive compared to producer prices and that both labour-market search effects and negative externalities have substantial impacts on the overall effect of changes in transport costs.

Keywords: Metropolitan Area; Housing Price; Transport Cost; Unemployment Benefit; Unemployed Worker (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-540-77150-0_8

Ordering information: This item can be ordered from
http://www.springer.com/9783540771500

DOI: 10.1007/978-3-540-77150-0_8

Access Statistics for this chapter

More chapters in Advances in Spatial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().