Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/26366
Authors: 
Borck, Rainald
Wrede, Matthias
Year of Publication: 
2008
Series/Report no.: 
CESifo working paper 2321
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.
Subjects: 
commuting subsidies
agglomeration externalities
intercity and intracity commuting
JEL: 
R14
R48
Document Type: 
Working Paper

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