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ID 46424
file
creator
Ahmed, Abu Nur Rashed
Arnott, Richard James
subject
Optimal transportation network
Land use models
JEL codes: R14
JEL codes: R42
JEL codes: R52
NDC
Transportation services
abstract
Ignoring distortions, the social benefit from an urban transportation improvement is typically measured as the reduction in transportation costs at a particular location, holding travel fixed at the pre-improvement level, summed over all locations. The result has been seen in specific urban transportation models, however, not formally derived as a general result. Through a transformation of variables first employed in Arnott and Stiglitz (1981), this paper adopts a di↵erent perspective to generalize the result. From this perspective, the benefits of a transportation improvement derive from the increase in the residential land area of better accessibility that the improvement brings about. The generalized result tells that a transportation improvement changes the land area at varying levels of accessibility, as well as land rents throughout the city, however, the social benefit of the transportation improvement is then measured as the increase in aggregate di↵erential land rents due to a change in land area at each level of accessibility, rather than that due to a change in land rent, by holding the function relating land rent to accessibility at its pre-improvement levels. This paper presents this result by using a basic monocentric model as a vehicle of demonstration and then shows that the result generalizes beyond the geographic features of the city, to a broad class of first-best urban economies with multiple transportation modes and employment centers and multiple household groups.
journal title
IDEC DP2 Series
volume
Volume 8
issue
Issue 3
start page
1
end page
16
date of issued
2018-07-10
publisher
広島大学大学院国際協力研究科
language
eng
nii type
Departmental Bulletin Paper
HU type
Departmental Bulletin Papers
DCMI type
text
format
application/pdf
text version
publisher
department
Graduate School for International Development and Cooperation
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