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Subsidies for Intracity and Intercity Commuting

Rainald Borck () and Matthias Wrede ()

No 2321, CESifo Working Paper Series from CESifo Group Munich

Abstract: This paper analyzes subsidies for intracity and intercity commuting in an urban economics framework with two cities and agglomeration externalities, where workers may commute within and between cities. First, commuting subsidies serve to internalize agglomeration externalities: Intracity commuting subsidies give incentives to move to the larger city and intercity commuting subsidies make residents of the periphery commute to the core. Second, if agglomeration rents are locally captured, commuting subsidies act as a welfare enhancing transfer from the core to the periphery.

Keywords: commuting subsidies; agglomeration externalities; intercity and intracity commuting (search for similar items in EconPapers)
JEL-codes: R14 R48 (search for similar items in EconPapers)
Date: 2008
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Journal Article: Subsidies for intracity and intercity commuting (2009) Downloads
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