Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70374
Authors: 
Chia, Ngee-Choon
Tsui, Albert K. C.
Whalley, John
Year of Publication: 
2003
Series/Report no.: 
Research Report, Department of Economics, University of Western Ontario 2003-5
Abstract: 
This paper presents a simple general equilibrium model involving trips from residential areas to a central business district, along with modal choice between cars and public transit. Using a calibrated numerical model, we investigate the relative merits of ownership and use taxes. The proposed model is used to evaluate traffic control policies in Singapore and can be used in other Asian countries. We compare full internalisation of congestion externalities to optimal tax outcomes for the different tax types. In our framework, use taxes restore Pareto optimality since congestion damage rises with more trips. Ownership taxes only partially internalise congestion externalities. However, in terms of revenue-raising ability, the marginal excess burdens in the neighbourhood of optimal taxes are typically lower for ownership taxes than use taxes.
JEL: 
H21
H31
R48
Document Type: 
Working Paper

Files in This Item:
File
Size
241.31 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.