Congested Interregional Infrastructure, Road Pricing and Regional Labour Markets

David Philip McArthur (), Inge Thorsen () and Jan Ubøe
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David Philip McArthur: Stord/Haugesund University College, Postal: Stord/Haugesund University College , P.O. Box 5000, N-5409 Stord, Norway
Inge Thorsen: Stord/Haugesund University College, Postal: Stord/Haugesund University College , P.O. Box 5000, N-5409 Stord, Norway

No 2009/3, Discussion Papers from Norwegian School of Economics, Department of Business and Management Science

Abstract: Traffic congestion and the policies to combat it have been studied extensively. However, most studies neglect the labour market impacts of congestion. Many also fail to account for the simultaneity between commuting and migration. This paper models impacts such as unemployment disparities, changes in commuting flows and changes in the flow of migrants by adopting an agent based simulation approach. This approach has the strength that it allows the simultaneous consideration of commuting, migration and labour force participation decisions. The results obtained have important theoretical and policy implications and show how an "optimal" charge may, in fact, be sub-optimal.

Keywords: Congestion; Road pricing; Agent-based approach; Spatial interaction; Infrastructure investment (search for similar items in EconPapers)
JEL-codes: J61 R12 R23 R41 R48 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2009-04-14
New Economics Papers: this item is included in nep-cmp, nep-geo, nep-lab and nep-ure
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