Scipediacontent: Scipediacontent moved page Draft Content 685239091 to Borger et al 2019a

2021-02-16T09:32:37Z

Scipediacontent moved page Draft Content 685239091 to Borger et al 2019a

Scipediacontent: Created page with " == Abstract == The purpose of this paper is to investigate, using both theoretical and numerical analysis, the impact of agglomeration externalities on short-run policy d..."

2021-02-16T09:32:30Z

Created page with " == Abstract == The purpose of this paper is to investigate, using both theoretical and numerical analysis, the impact of agglomeration externalities on short-run policy d..."

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== Abstract ==

The purpose of this paper is to investigate, using both theoretical and numerical analysis, the impact of agglomeration externalities on short-run policy decisions in public transport, i.e. socially optimal pricing, frequency setting, and subsidisation. We develop a simple two-mode model in which commuters can opt for car or public transport use; car use leads to congestion, and public transport is subject to crowding. Allowing for agglomeration externalities, we show the following results. First, if car use is correctly priced for congestion, agglomeration benefits imply substantially lower public transport fares and higher frequencies. They neutralise to some extent the pressure to increase fares to correct the crowding externality. Second, as a consequence, agglomeration benefits justify low cost recovery ratios in public transport. Assuming an agglomeration elasticity of 1.04, a value well within the range of reported elasticities, numerical implementation of the model finds that cost-recovery ratios are 35.8% lower than in the absence of the productivity externality. Third, interestingly, the effect of agglomeration benefits on fares and frequency is much smaller if road use is exogenously under-priced. In this case, any modal shift induced by lower public transport fares has opposing agglomeration effects on the two modes, since agglomeration benefits are not mode-specific.

== Original document ==

The different versions of the original document can be found in:

* [http://hdl.handle.net/10044/1/75904 http://hdl.handle.net/10044/1/75904]

* [https://hdl.handle.net/10067/1686670151162165141 https://hdl.handle.net/10067/1686670151162165141]

* [https://api.elsevier.com/content/article/PII:S0166046219302236?httpAccept=text/xml https://api.elsevier.com/content/article/PII:S0166046219302236?httpAccept=text/xml],
: [https://api.elsevier.com/content/article/PII:S0166046219302236?httpAccept=text/plain https://api.elsevier.com/content/article/PII:S0166046219302236?httpAccept=text/plain],
: [http://dx.doi.org/10.1016/j.regsciurbeco.2019.103503 http://dx.doi.org/10.1016/j.regsciurbeco.2019.103503] under the license https://www.elsevier.com/tdm/userlicense/1.0/

* [https://www.sciencedirect.com/science/article/pii/S0166046219302236 https://www.sciencedirect.com/science/article/pii/S0166046219302236],
: [https://ideas.repec.org/a/eee/regeco/v81y2020ics0166046219302236.html https://ideas.repec.org/a/eee/regeco/v81y2020ics0166046219302236.html],
: [https://spiral.imperial.ac.uk/handle/10044/1/75904 https://spiral.imperial.ac.uk/handle/10044/1/75904],
: [https://jglobal.jst.go.jp/en/detail?JGLOBAL_ID=202002212700351642 https://jglobal.jst.go.jp/en/detail?JGLOBAL_ID=202002212700351642],
: [https://academic.microsoft.com/#/detail/2996941489 https://academic.microsoft.com/#/detail/2996941489]

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Borger et al 2019a - Revision history

Scipediacontent: Scipediacontent moved page Draft Content 685239091 to Borger et al 2019a

Scipediacontent: Created page with " == Abstract == The purpose of this paper is to investigate, using both theoretical and numerical analysis, the impact of agglomeration externalities on short-run policy d..."