Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks

François Gusdorf and Stephane Hallegatte
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François Gusdorf: CIRED

No 2007.17, Working Papers from Fondazione Eni Enrico Mattei

Abstract: This paper shows that cities made more compact by transportation taxation are more robust than spread-out cities to shocks in transportation costs. Such a shock, indeed, entails negative transition effects that are caused by housing infrastructure inertia and are magnified in low-density cities. Distortions due to a transportation tax, however, have in absence of shock detrimental consequences that need to be accounted for. The range of beneficial tax levels can, therefore, be identified as a function of the possible magnitude of future shocks in transportation costs. These taxation levels, which can reach significant values, reduce city vulnerability and prevent lock-ins in under-optimal situations.

Keywords: Urban transportation; Housing; Inertia; Vulnerability; Transportation Taxation (search for similar items in EconPapers)
JEL-codes: H23 H31 R21 R48 (search for similar items in EconPapers)
Date: 2007-02
New Economics Papers: this item is included in nep-geo, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2010)
Journal Article: Compact or spread-out cities: Urban planning, taxation, and the vulnerability to transportation shocks (2007)
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007)
Working Paper: Compact or Spread-Out Cities: Urban Planning, Taxation, and the Vulnerability to Transportation Shocks (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:fem:femwpa:2007.17

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