This paper explores the inerrelations between pricing, capacity choice and financing in transportation networks. It builds on the famous Mohring-Harwitz result on self-financing of optimally designed roads under optimal congestion pricing, and specifically asks the following questions: (1) to...

In this paper we develop and estimate a discrete-continuous model for car ownership and use that incorporates quality choice and the decision to own multiple cars. The basic model, used for instance in De Jong (1991), treats all cars as being equal (no differences in quality) and only considers...