Borck, Rainald; Wrede, Matthias - CESifo - 2008
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 … subsidies make residents of the periphery commute to the core. Second, if agglomeration rents are locally captured, commuting …
