Ameliorating congestion by income redistribution

Consider a community with individuals who consume a private good and use a congestible facility. Without a congestion fee, use of the congestible facility will exceed the socially optimal level. We show that under some conditions this externality problem can be solved by income redistribution. Indeed, the poor can gain from a redistribution to the rich.

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Year of publication:	1993-01-01
Authors:	Glazer, Amihai ; Konrad, Kai A.
Institutions:	Institute for Transportation Studies (ITS), University of California-Berkeley
Subject:	Architecture

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Extent:	application/pdf
Series:	University of California Transportation Center, Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series University of California Transportation Center
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010677194