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...

In this paper we analyze the impact of a simple regional economic policy in the context of the core periphery model of the New Economic Geography. More specifically, we look at the welfare effects of a decrease in transport cost that is financed by a lump-sum tax on all inhabitants of the...