This paper formulates a model of optimal road capacity in the presence of unpriced congestion. The model includes the assumption that the peak traffic volume may fall below the capacity of the highway because of a large level of traffic density. The analysis in the paper shows that the optimal...

This paper examines urban highway congestion pricing in the instance in which it is not possible to levy a congestion toll on a major portion of the urban road system. This case is pertinent because of technical and/or political constraints. The paper uses economic theory of the second best and...

This paper presents standard microeconomic models that are designed to be used in the cost-benefit analysis of local land use decisions. The models connect these allocation decisions to outcomes in the urban land and labor markets so that costs and benefits can be measured. Benefits to the local...

Presents and empirical study of office rents and property taxes for individual buildings in downtown Chicago in 1991. The results show that 45 percent of property tax differentials are shifted forward to tenants as higher gross rents. Application of the Hausman(1978) test for specification error...