A new paradigm for transport economists has been established: revenues of a welfare-maximising road tax should be employed to reduce the level of a distortionary income tax. An essential assumption to reach this conclusion is that the number of workdays is optimally chosen, whereas daily...

In this paper we study how congestion and residential movingbehaviour are interrelated using a two-region job search model. Workerschoose optimally between interregional commuting and residential movingto live closer to the place of work. This choice affects the external costs ofcommuting due to...

This paper investigates second-best congestion pricing in a monocentric city characterized by distortionary, rigid regulatory mechanisms in the housing market (building height restrictions, zoning and property taxation). The Pigouvian toll is shown to retain its optimality under any setting with...