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Department of Business and Management Science, Norwegian School of Economics (NHH) Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)

No 2009/3:
Congested Interregional Infrastructure, Road Pricing and Regional Labour Markets

David Philip McArthur (), Inge Thorsen () and Jan Ubøe ()

Abstract: Traffic congestion and the policies to combat it have been studied extensively. However, most studies neglect the labour market impacts of congestion. Many also fail to account for the simultaneity between commuting and migration. This paper models impacts such as unemployment disparities, changes in commuting flows and changes in the flow of migrants by adopting an agent based simulation approach. This approach has the strength that it allows the simultaneous consideration of commuting, migration and labour force participation decisions. The results obtained have important theoretical and policy implications and show how an "optimal" charge may, in fact, be sub-optimal.

Keywords: Congestion; Road pricing; Agent-based approach; Spatial interaction; Infrastructure investment; (follow links to similar papers)

JEL-Codes: J61; R12; R23; R41; R48; (follow links to similar papers)

24 pages, April 14, 2009

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