In studying congestion tolling, it is important to account for heterogeneity in preferences of drivers, as ignoring it can bias the welfare gains. We analyse the effects of tolling, in the bottleneck model, with continuous heterogeneity in the value of time and schedule delay. The welfare gain...

This paper introduces money into an overlapping generations model with endogenous growth. The model, due to Docquier et al. (2007), exhibits a positive intergenerational externality which precludes its laissez-fair equilibrium to be optimal even if the government can control the level of...

Democratic countries with substantial inequality and where people believe that success depends on connections and luck induce political support for high tax rates and generous welfare states. Traditional wisdom is that such policies harm the economy, but there is not much evidence that countries...

We develop a model with two types of electricity producers, fossil fuel utilities generating emissions, and suppliers of electricity from renewable resources such as wind energy. We account for the vertical structure of the wind-energy sector by considering wind-turbine producers engaged in...

We analyze a market game where firms choose capacities under uncertainty about future market conditions and make output choices after uncertainty has unraveled. We show existence and uniqueness of equilibrium under imperfect competition and establish that capacity choices by strategic firms are...

In jüngerer Zeit sind in einigen europäischen Städten Nulltarife im Öffentlichen Personennahverkehr eingeführt worden. Zu welchen Ergebnissen führte diese Maßnahme? Konnten damit Pkw-Fahrer zu einem Umstieg auf den umweltfreundlichen ÖPNV bewegt und die Externaiitäten des Pkw-Verkehrs...

This paper considers the second-best problem where not all links of a congested transportation networkcan be tolled. The paper builds on earlier work, in which the second-best tax rule for this problem wasderived for general static networks, so that the solution presented is valid for any graph...

This paper studies the second-best problem where not all links of a congestedtransportation network can be tolled. The second-best tax rule for thisproblem is derived for general static networks, so that the solution presentedis valid for any graph of the network and any set of tolling points...

Conventional economic wisdom suggests that congestion pricing would be an appropriate response to cope with the growing congestion levels currently experienced at many airports. Several characteristics of aviation markets, however, may make naive congestion prices equal to the value of marginal...

Paper submission from Erik Verhoef (everhoef@econ.vu.nl)Discussion Paper Submission Form - STEP 1This discussion paper abstract is submitted by Erik Verhoef (everhoef@econ.vu.nl)Template-Type: ReDIF-Paper 1.0Series: Tinbergen Institute Discussion PapersCreation-Date: Number: Author-Name: Erik T...