EconPapers    
Economics at your fingertips  
 

Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks

Francois Gusdorf and Stephane Hallegatte ()

No 10273, Economic Theory and Applications Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that need to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/10273/files/wp070017.pdf (application/pdf)

Related works:
Journal Article: Compact or spread-out cities: Urban planning, taxation, and the vulnerability to transportation shocks (2007) Downloads
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007) Downloads
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007)
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks Downloads
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:ags:feemet:10273

DOI: 10.22004/ag.econ.10273

Access Statistics for this paper

More papers in Economic Theory and Applications Working Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-11-09
Handle: RePEc:ags:feemet:10273