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Yardstick Competition in Toll Revenues: Evidence from US States

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  • Jonathan C. Rork

Abstract

States have competed against one another in a variety of fiscal venues. We demonstrate that toll revenues are another such arena, with states competing with those states from which they receive and/or send many commuters. Because the size of interstate commuters is small relative to intrastate commuters, and because commuters exhibit inelastic behaviour with regard to toll changes, we argue that competition over tolls is an example of political-based yardstick competition. © 2009 LSE and the University of Bath

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  • Jonathan C. Rork, 2009. "Yardstick Competition in Toll Revenues: Evidence from US States," Journal of Transport Economics and Policy, University of Bath, vol. 43(1), pages 123-139, January.
    • Handle: RePEc:tpe:jtecpo:v:43:y:2009:i:1:p:123-139
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    Cited by:

    1. De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, vol. 1(1), pages 35-48.
    2. Watling, D.P. & Shepherd, S.P. & Koh, A., 2015. "Cordon toll competition in a network of two cities: Formulation and sensitivity to traveller route and demand responses," Transportation Research Part B: Methodological, Elsevier, vol. 76(C), pages 93-116.
    3. Hawley, Zackary & Rork, Jonathan C., 2015. "Competition and property tax limit overrides: Revisiting Massachusetts' Proposition 2½," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 93-107.

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