This paper investigates features of an urban economy where there is unpriced transportation congestion. It focusses on the relationship between the market rent on residential land, the shadow rent on residential land, and the shadow rent on land in road use, when road width is arbitrary, and...

This paper extends Becker's 1962 analysis of the effects of training and labor turnover costs on the structure of free market employment contracts to the case where insurance markets are incomplete as a result of imperfect information. It examines the characteristics of the employment contract...

This paper examines the structure of multi-period employment contracts in an economy with identical workers when only incomplete insurance is provided against job-related contingencies, stemming from asymmetric information. The employment contract provides implicit insurance by paying workers...

This paper investigates the effects of an equiproportional transport improvement in a fully-closed monocentric city. It focuses on the impact of the improvement on aggregate and differential land rents, and aggregate transport costs. The elasticity of aggregate transport demand is related to the...

We analyze the decisions to take up and quit cigarette smoking with a life-cycle model in which lifetime is uncertain and depends on cigarette consumption. Cigarette smoking increases the current utility of some consumers but it also imposes private costs; the expenditure on cigarettes, the...

This paper examines the properties of stationary-state general equilibrium in a monocentric city with durable housing. On the demand side, identical households choose location, housing quality and quantity, and other goods. On the supply side, developers choose the structural density and time...

This paper presents a model with rental housing vacancies in equilibrium. Because of the indivisibility and multi-dimensional heterogeneity of housing units, the market is thin. As a result, a typical household entering the market is willing to pay a premium of its most-preferred over its second...

Following the work of Oates, there has recently been considerable interest in the capitalization into land values of the differences in fiscal benefits between communities. We argue the while the partial equilibrium argument which forms the basis of the capitalization hypothesis is casual and...

This paper investigates a representative landlord's profit-maximization problem in a stationary environment. The landlord must decide on the quality of his housing units at the time of construction, maintenance expenditure over the life of the building, and the time of demolition. The focus is...