GENERAL EQUILIBRIUM VS. OPTIMUM, AND THE ALLOCATION OF LAND FOR TRANSPORTATION IN A CLOSED INFORMATION-ORIENTED CITY WITH TRAFFIC CONGESTION

This paper presents a general equilibrium model for a closed city. The households residing in the suburbs are able to supply labor for the firms in the central business district not only by commuting, which causes traffic congestion, but also by telecommuting which needs an input of telecommunication services. The laissez-faire equilibrium is compared with the optimum. The authors derive the equilibria by numerical computations using specific utility, production, and congestion functions. Results show the allocation of land for transportation based on the social cost-benefit rule; this is different from the allocation of Mills and de Ferranti (1971). This indicates that in the optimum market equilibrium, which is maintained by both a congestion tax and subsidy, the city is rather more suburbanized than expected on the basis of previous studies.

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  • Corporate Authors:

    Regional Science Association International

    Heidelberger Platz 3
    14197 Berlin,   Germany 
  • Authors:
    • Shibusawa, H
    • Higano, Y
  • Publication Date: 1997-7

Language

  • English

Media Info

  • Features: References;
  • Pagination: p. 321-342
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00792558
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 8 2000 12:00AM