Ameliorating congestion by income redistribution

Glazer, Amihai and Konrad, Kai A. (1993): Ameliorating congestion by income redistribution. Reprint / University of California, Transportation Center

Abstract

Consider a community with individuals who consume a private good and use a congestible facility. Without a congestion fee, use of the congestible facility will exceed the socially optimal level. We show that under some conditions this externality problem can be solved by income redistribution. Indeed, the poor can gain from a redistribution to the rich.

• Item Type: Paper
• Form of publication: Publisher's Version
• Faculties: Economics > Chairs > MPI for Tax Law and Public Finance
• Subjects: 300 Social sciences > 330 Economics
• JEL Classification: D62, D72, D31
• ISSN: 0166-0462
• Language: English