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)
Pages: 29
Date: 2007
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Citations: View citations in EconPapers (14)

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https://ageconsearch.umn.edu/record/10273/files/wp070017.pdf (application/pdf)

Related works:
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2010)
Journal Article: 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 (2007)
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:feemet:10273

DOI: 10.22004/ag.econ.10273

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