Subsidies for Intracity and Intercity Commuting

Journal article

Publication Details

Author(s): Borck R, Wrede M
Journal: Journal of Urban Economics
Publisher: Elsevier
Publication year: 2009
Volume: 66
Pages range: 25-32
ISSN: 0094-1190
Language: English


This paper analyzes subsidies for intracity and intercity commuting in an urban economics framework with two cities and agglomeration externalities, where workers may commute within and between cities. First, commuting subsidies serve to internalize agglomeration externalities: intracity commuting subsidies give incentives to move to the larger city and intercity commuting subsidies make residents of the periphery commute to the core. Second, if agglomeration rents are locally captured, commuting subsidies act as a welfare enhancing transfer from the core to the periphery. © 2009 Elsevier Inc. All rights reserved.

FAU Authors / FAU Editors

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik

How to cite

Borck, R., & Wrede, M. (2009). Subsidies for Intracity and Intercity Commuting. Journal of Urban Economics, 66, 25-32.

Borck, Rainald, and Matthias Wrede. "Subsidies for Intracity and Intercity Commuting." Journal of Urban Economics 66 (2009): 25-32.


Last updated on 2018-14-07 at 16:23