Publication
Title
The structure of the labor market, telecommuting, and optimal peak period congestion tolls : a numerical optimization mode
Author
Abstract
This paper extends a standard model of welfare optimal peak-period congestion tolls to take into account two characteristics of typical European labor markets, viz. wage bargaining and the increasing potential of telecommuting as an alternative to working on-the-job. Specifically, we consider the government's problem of determining optimal labor and peak-period transport taxes under two different labor market structures, viz., a competitive labor market and a wage bargaining setting. The models include commuting and non-commuting transports, and they allow for telecommuting. We implement the models numerically using Belgian data. Results include the following. First, if union preferences reflect the transport concerns of their members, we find that optimal congestion taxes under competitive labor market conditions exceed those under bargaining by 1017%. Second, the combination of substantially higher transport taxes and lower labor taxes compared to the reference situation jointly implies that the optimal tax structure strongly stimulates telecommuting for both labor market structures considered. Third, it is found that improving the efficiency of telecommuting results in a considerable reduction of optimal congestion tolls.
Language
English
Source (journal)
Regional science & urban economics. - Amsterdam
Publication
Amsterdam : 2011
ISSN
0166-0462
Volume/pages
41:5(2011), p. 426-438
ISI
000294398100002
Full text (Publisher's DOI)
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 18.11.2011
Last edited 17.08.2017
To cite this reference