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Inefficiencies in regional commuting policy

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  • Toon Vandyck
  • Stef Proost

Abstract

This paper discusses investments in transport infrastructure and incentives for commuting taxes in a multiregional setting. We study the horizontal and vertical interactions between governments. We identify incentives for strategic and tax exporting behavior that might lead to underinvestment in transport infrastructure. Furthermore, we show that the intensity of the strategic behavior is affected by geographic firm ownership structure, the number of labor-supplying regions and the revenue-sharing mechanism in the federation. A numerical example applies the insights on commuting in Belgium.
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  • Toon Vandyck & Stef Proost, 2012. "Inefficiencies in regional commuting policy," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 659-689, August.
    • Handle: RePEc:bla:presci:v:91:y:2012:i:3:p:659-689
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    Cited by:

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    3. De Borger, Bruno & Proost, Stef, 2015. "The political economy of public transport pricing and supply decisions," Economics of Transportation, Elsevier, vol. 4(1), pages 95-109.
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    6. Dong, Tao & Jia, Ning & Ma, Shoufeng & Xu, Shu-Xian & Ping Ong, Ghim & Liu, Peng & Huang, Hai-Jun, 2022. "Impacts of intercity commuting on travel characteristics and urban performances in a two-city system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).

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