Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74073 
Year of Publication: 
2007
Series/Report no.: 
Nota di Lavoro No. 17.2007
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that need to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.
Subjects: 
Urban transportation
Housing
Inertia
Vulnerability
Transportation Taxation
JEL: 
R21
R48
H23
H31
Document Type: 
Working Paper

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