Borck, Rainald (contributor); Wrede, Matthias (contributor) - 2004 - [Elektronische Ressource]
We study the political economy of commuting subsidies in a model of a monocentric city with two income classes … 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 …