Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18703
Authors: 
Borck, Rainald
Wrede, Matthias
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper 1339
Abstract: 
We study the political economy of commuting subsidies in a model of a mono-centric city with two income classes. Depending on housing demand and transport costs, either the rich or the poor live in the central city and the other group in the suburbs. Commuting subsidies increase the net income of those with long commutes or high transport costs. They also affect land rents and therefore the income of landowners. The paper studies how the locational pattern of the two income classes and the incidence of landownership affects the support for commuting subsidies.
Subjects: 
commuting subsidies
voting
monocentric city
JEL: 
R48
R14
Document Type: 
Working Paper

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