This paper analyzes subsidies for intracity and intercity commuting in an urban economics framework with two cities and … agglomeration externalities, where workers may commute within and between cities. First, commuting subsidies serve to internalize … agglomeration externalities: Intracity commuting subsidies give incentives to move to the larger city and intercity commuting …

We study a simple model of commuting subsidies with two transport modes. City residents choose where to live and which …