Political Economy of Commuting Subsidies

Journal article

Publication Details

Author(s): Borck R, Wrede M
Journal: Journal of Urban Economics
Publisher: Elsevier
Publication year: 2005
Volume: 57
Pages range: 478-499
ISSN: 0094-1190
Language: English


We study the political economy of commuting subsidies in a model of a monocentric city with two income classes. Depending on housing demand and transport costs, either the rich or the poor live in the central city and the other group in the suburbs. Commuting subsidies increase the net income of those with long commutes or high transport costs. They also affect land rents and therefore the income of landowners. The paper studies how the locational pattern of the two income classes and the incidence of landownership affects the support for commuting subsidies.

FAU Authors / FAU Editors

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

How to cite

Borck, R., & Wrede, M. (2005). Political Economy of Commuting Subsidies. Journal of Urban Economics, 57, 478-499. https://dx.doi.org/10.1016/j.jue.2004.12.003

Borck, Rainald, and Matthias Wrede. "Political Economy of Commuting Subsidies." Journal of Urban Economics 57 (2005): 478-499.


Last updated on 2018-17-10 at 07:00