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German metropolitan area. In extension to most studies focusing on only one kind of subsidy, we compare the effects of … account. The results suggest that optimal subsidy levels are either small or even zero. While subsidizing public transport is … predominantly automobile. In contrast, pure commuting subsidies hardly affect aggregate urban welfare, but distributional effects …
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The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational hysteresis. We study this seminal model with CES instead of Cobb-Douglas upper tier preferences. This small generalization suffices to change these stark implications. For a wide...
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