It has frequently been noted in the wage bargaining literature that increasing average labour taxes may in fact be over-shifted in the pre-tax wage that is negotiated between unions and firms, raising workers post-tax wages. In this paper, we study the precise conditions for such tax...

This paper deals with cost-benefit analysis of investment in transport infrastructure. Its contribution is twofold. Firstly, we develop a general equilibrium model to explore the impact of a small budgetary-neutral investment in transport infrastructure in a second-best setting, where other...

During the last decade much progress has been made in defining & measuring the external costs of transport. As the cost of tolling equipment falls, the set of realistic policy options to internalise these externalities will continue to grow. This will determine the research and policy agenda. We...

There are two main sources of inefficiency in urban transport markets. First, transport prices fail to reflect the external costs of travel, notably peak-period external congestion costs. Secondly, a large percentage of drivers park for free, particularly at the workplace. Economic theory...