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Congestion and Residential Moving Behaviour

Author

Listed:
  • Morten Marott Larsen

    (University of Copenhagen and Institute of Local Government Studies)

  • Ninette Pilegaard

    (Danish Transport Research Institute, Lyngby)

  • Jos van Ommeren

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

In this paper we study how congestion and residential movingbehaviour are interrelated using a two-region job search model. Workerschoose optimally between interregional commuting and residential movingto live closer to the place of work. This choice affects the external costs ofcommuting due to congestion. The welfare maximizing road tax is derived.We demonstrate that road pricing may not only reduce congestion but alsoincrease total residential moving costs in the economy. One of the mainconsequences is that the road tax does not necessarily increase welfare.

Suggested Citation

  • Morten Marott Larsen & Ninette Pilegaard & Jos van Ommeren, 2004. "Congestion and Residential Moving Behaviour," Tinbergen Institute Discussion Papers 04-096/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040096
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    Citations

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    Cited by:

    1. Ioulia V Ossokina & Jos van Ommeren & Henk van Mourik, 2023. "Do highway widenings reduce congestion?," Journal of Economic Geography, Oxford University Press, vol. 23(4), pages 871-900.
    2. Kan, Zihan & Liu, Dong & Yang, Xue & Lee, Jinhyung, 2024. "Measuring exposure and contribution of different types of activity travels to traffic congestion using GPS trajectory data," Journal of Transport Geography, Elsevier, vol. 117(C).
    3. Agarwal, Sumit & Koo, Kang Mo & Sing, Tien Foo, 2015. "Impact of electronic road pricing on real estate prices in Singapore," Journal of Urban Economics, Elsevier, vol. 90(C), pages 50-59.
    4. Tikoudis, Ioannis & Verhoef, Erik T. & van Ommeren, Jos N., 2018. "Second-best urban tolls in a monocentric city with housing market regulations," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 342-359.
    5. Cheng Keat Tang, 2016. "Traffic Externalities and Housing Prices: Evidence from the London Congestion Charge," SERC Discussion Papers 0205, Centre for Economic Performance, LSE.
    6. Ioulia V Ossokina & Jos van Ommeren & Henk van Mourik, 2023. "Do highway widenings reduce congestion?," Review of Finance, European Finance Association, vol. 23(4), pages 871-900.
    7. Huang, Naqun & Li, Jing & Ross, Amanda, 2018. "The impact of the cost of car ownership on the house price gradient in Singapore," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 160-171.
    8. McArthur, D.P. & Thorsen, I. & Ubøe, J., 2012. "Labour market effects in assessing the costs and benefits of road pricing," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 310-321.
    9. Van Ommeren, Jos & Graaf-de Zijl, Marloes, 2013. "Estimating household demand for housing attributes in rent-controlled markets," Journal of Housing Economics, Elsevier, vol. 22(1), pages 11-19.
    10. Tong, Qingmeng & Qiu, Feng, 2020. "Population growth and land development: Investigating the bi-directional interactions," Ecological Economics, Elsevier, vol. 169(C).
    11. Marchiori, Luca & Pascal, Julien & Pierrard, Olivier, 2023. "(In)efficient commuting and migration choices: Theory and policy in an urban search model," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    12. Giovanni Russo & Federico Tedeschi & Aura Reggiani & Peter Nijkamp, 2014. "Commuter Effects on Local Labour Markets: A German Modelling Study," Urban Studies, Urban Studies Journal Limited, vol. 51(3), pages 493-508, February.

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    More about this item

    Keywords

    Congestion; Residential Moving and Job Search;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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