The general equilibrium effects of high-occupancy vehicle lanes on congestion,sprawl, energy use,and carbon emissions

High-occupancy vehicle (HOV) lanes have been promoted to encourage carpools, reduce traffic congestion, and improve air quality. At the partial equilibrium level, commuting with three workers per automobile clearly reduces highway congestion, lowers carbon emissions, and saves energy compared with three single drivers. This paper develops a numerical urban simulation model to generate the general equilibrium effects of HOV lanes on urban spatial structure, energy use, and greenhouse gas emissions. The major findings are that while HOV lanes reduce traffic congestion and improve welfare, the fall in transportation cost leads to urban sprawl, which results in higher dwelling energy use and a larger carbon footprint. Overall, the HOV lane policy has little effect on total energy consumption and carbon emissions. This is another classic case of general equilibrium effects reversing the partial equilibrium effects of an urban policy. In contrast, a gasoline tax policy leads to less urban sprawl but is less effective at lowering energy consumption and carbon emissions. Imposing congestion tolls is a more effective tool at reducing traffic congestion, saving energy, and lowering carbon emissions.     

HEDONIC PRICING WHEN HOUSING IS ENDOGENOUS: THE VALUE OF ACCESS TO THE TRANS‐ISRAEL HIGHWAY*

Standard hedonic house pricing assumes that house prices are independent of the intangible to be priced. A methodology is proposed in which the supply as well as the demand for housing depends on the intangible. The methodology is applied to value access to the Trans‐Israel Highway (TIH). Using spatial panel data (2002–2008) we show that TIH had two effects on the housing market. It increased house prices in locations with greater access to TIH, and it affected housing construction. Standard hedonic pricing would have underestimated the value of access because it ignores the effects of housing construction on the intangible to be priced. House prices began to increase three years before TIH was inaugurated, but housing construction did not anticipate the inauguration of TIH.     

Pricing Road Congestion: Recent Evidence from Singapore

The role of road pricing in travel demand management and congestion mitigation has been gaining support in many countries. Although the theory of congestion pricing is persuasive and straightforward, successful application of road pricing mandates that congestion externalities be estimated. Using data from a recent traffic survey in Singapore, this paper estimates congestion prices for alternative time values and vehicle types. These estimates are compared with the existing cost of area licenses, from which implications for economic efficiency and resource allocation are drawn.     

A Spatial Price Determination Model for Multi‐Market Heterogeneously Distributed Resources: An Application to Forestry Markets in Sweden

The spatial dimension is a key paradigm in price determination, as attested by recent studies in the literature that highlighted the differential in market behavior between spatial and non‐spatial pricing settings. In this paper, we develop a model of spatial pricing for multi‐market heterogeneously distributed resources, with an application to the Swedish forestry sector. The focus of the model is to estimate the impact of spatial interaction on the demand for resources in terms of resource allocation, competition, and pricing. In its core, the pricing mechanism relies on a supply–demand framework. Using disaggregated data at the gridcell level for forest feedstock supply and harvesting costs in Sweden, we construct regional supply curves for each gridcell assuming a maximum transportation distance to delimit the potential market. Demand nodes are exogenously determined and are adjusted using a distance‐decay model to assess demand pressure across locations. We apply the model empirically to assess the impact on forest feedstock prices of a 20 TWh increase in biofuel production.     

THE IMPACT OF CRIME ON APARTMENT PRICES: EVIDENCE FROM STOCKHOLM,SWEDEN

This study uses data of about 9,000 apartment sales in Stockholm, Sweden, to assess the impact of crime on property prices. The study employs hedonic pricing modelling to estimate the impact of crime controlling for other factors (property and neighbourhood characteristics). Geographic Information System (GIS) is used to combine apartment sales by coordinates with offences, land use characteristics and demographic data of the population. The novelty of this research is threefold. First, it explores a set of land use attributes created by spatial techniques in GIS in combination with detailed geographical data in hedonic pricing modelling. Second, the effect of crime in neighbouring zones at one place can be measured by incorporating spatial lagged variables of offence rates into the model. Third, the study provides evidence of the impact of crime on housing prices in a capital city of a traditional welfare state, information otherwise lacking in the international literature. Our results indicate that apartment prices in a specific area are strongly affected by crime in its neighbouring zones, regardless of crime type. When offences were broken down by types, residential burglary, theft, vandalism, assault and robbery individually had a significant negative effect on property values. However, for residential burglary such an effect is not homogenous across space, and apartment prices in central areas are often less discounted by being exposed to crime than those in the city's outskirts.     

Modeling Residential and Business Telecommunication Flows: A Regional Point-to-Point Approach

Regional telecommunication flows, measured in terms of numbers of messages and conversation minutes, are analyzed with a systematic random sample of toll calls characterized by their timing, duration, cost, and origin-destination (O-D) locations. Point-to-point models are econometrically estimated, with such independent variables as destination market size, O-D distance, and average and time-of-day (TOD) prices, for the residential and business sectors separately. The results indicate that (1) the demands for calls and conversation minutes are price-inelastic and slightly elastic, respectively, (2) business demand is relatively more price-elastic than residential demand, (3) distance is a strong determinant of telephone demand, and (4) most TOD demand substitutions resulting from TOD price changes would take place between the daily and evening rate periods. Several areas for further research are outlined.     

Price Dynamics in the International Wheat Market: Modeling with Error Correction and Directed Acyclic Graphs

In this paper we examine dynamic relationships among wheat prices from five countries for the years 1981–1999. Error correction models and directed acyclic graphs are employed with observational data to sort–out the dynamic causal relationships among prices from major wheat producing regions: Canada, the European Union, Argentina, Australia, and the United States. An ambiguity related to the cyclic or acyclic flow of information between Canada and Australia is uncovered. We condition our analysis on the assumption that information flow is acyclic. The empirical results show that Canada and the U.S. are leaders in the pricing of wheat in these markets. The U.S. has a significant effect on three markets excluding Canada.     

IMMIGRATION AND HOUSING BOOMS: EVIDENCE FROM SPAIN*

ABSTRACT We provide causal estimates of the effect of immigration on house prices and construction activity in Spain over the period 2000–2010. During this period Spain experienced spectacular swings in both immigration and the housing market. Our instrumental‐variables estimates suggest that between 2000 and 2010, immigration led to an average 1.5 percent annual increase in the working‐age population. This was responsible for an annual increase in housing prices of about 2 percent, and for a 1.2–1.5 percent increase in housing units. Overall, immigration was responsible for one quarter of the increase in prices and about half of the construction activity over the decade.     

Israeli Settlement in Occupied Territories and its Impact on Housing Prices in Israel

The real price of housing in Israel rose 132 percent from 1959 through 1988. This paper investigates the factors standing behind the temporal movement of the real price of housing. Special emphasise is given to the role of government policies that encouraged settlement in occupied territories. A static model of the housing market is formulated and estimated, which takes into account the interrelation between the housing market in Israel proper and the emerging market in the occupied territories. In addition to confirming the role of demand shifters in accounting for the increase in real housing prices, it is found that settlement in occupied territories was an important moderating factor. According to our estimates, settlement in occupied territories accounts for a moderation of 1 percent in the annual rate of price appreciation during the Labor government, and 2.4 percent during the Likud government. These figures are in line with our expectations in view of the different policies pursued by the rival governments.     

DEREGULATING THE DISTRIBUTION OF ELECTRICITY: PRICE AND WELFARE CONSEQUENCES OF SPATIAL OLIGOPOLY WITH UNIFORM DELIVERED PRICES*

ABSTRACT. Theoretical, spatial oligopoly models are developed and calibrated to simulate the price and welfare consequences of deregulating the retail price of electricity (the distribution function), assuming competing sources of generation supply are available. Two types of distribution competition are considered, retaining the currently used uniform delivered pricing structure: competition for customers at neighboring utilities’ borders and franchise competition. Because duplicate facilities are required for borderline competition, short-run price increases ranging between 14 and 37 percent over existing regulated prices are estimated for upstate New York, largely because deregulated prices reflect replacement, not historic, costs of facilities.     

Pricing, Capacity Choice, and Financing in Transportation Networks

Abstract.  This paper explores interrelations between pricing, capacity choice, and financing in transportation networks. We build on the Mohring‐Harwitz result on self‐financing of optimally designed and priced roads and investigate it in a network environment under various types of second‐best regulation. A small network model with endogenous car ownership demonstrates that optimal congestion pricing and capacity choice over an entire network may cause user prices to increase more in initially mildly congested areas compared to heavily congested areas. Furthermore, a flat kilometer charge under optimal capacity choice may result in first‐best efficiency gains.     

教育资源配置对住房价格影响的时空差异研究——以35个大中城市为例

本文以2002—2017年35个大中城市为数据基础,借鉴Rosen-Roback城市空间均衡模型,测度大中城市教育资源对住房价格的影响差异性。研究发现:(1)控制其他变量后,教育事业费支出水平每提高1%,住房价格水平平均上涨0.156个百分点;(2)空间维度上,沿海城市的教育资源对住房价格的影响,显著小于内陆城市;而政治级别的差异在大中城市间的影响较小;(3)时间维度来看,教育资源对住房价格的影响在各时期都是显著存在的,表明教育资源的影响具有长期累积特征;从影响程度绝对值来看,影响系数具有随时间递减的特征。     

COMPENSATION FOR COMMUTES IN THE LAND AND LABOR MARKETS: SOME EVIDENCE FROM THE TOKYO METROPOLITAN AREA*

ABSTRACT. Recent research suggests that in nonmonocentric cities compensation for commutes takes the form of both lower housing prices and higher wages. This paper develops a random utility model that predicts the probability of an actor choosing to commute between each residence and job in a metropolitan area conditional on the observed location of housing units and job sites. The model allows commuting time, origin-specific amenities, land prices, destination-specific amenities and wages to influence actors' choices. We estimate the model using maximum likelihood and generalized least squares techniques and data on commuting between each of 38 origin and 15 destination jurisdictions in the Tokyo metropolitan area. The empirical results show that, all else equal, a one percent increase in commuting time reduces the probability that a route (origin-destination combination) will be chosen by almost five percent. Origin-specific amenities are not completely capitalized into land prices and destination-specific amenities are not completely capitalized into wages. Desirable residential amenities include school quality and a low ratio of day to night population. Desirable workplace amenities include a large share of white collar jobs and a high density of employment.     

RESEARCH BRIEFING: EU accession and the Bulgarian real estate market

Accession of Bulgaria to the European Union (EU) is expected to result in an increase in the prices of all types of real estate as changes are expected to differ across the segments of the national real-estate market. Property prices have been influenced primarily by local demand, government policies and the perception that EU accession is promoting investment. It is likely that prices of flats will further differentiate, the market for office space will stabilize, the provision of infrastructure will importantly influence prices in holiday resorts and of industrial estates, and agricultural land prices will upsurge initially.     

WHY ARE URBAN TRAVEL TIMES SO STABLE?

Personal travel time in U.S. urban areas has been stable, clashing with the assertion that urban sprawl greatly lengthens travel. Average commute time rises by 7.7 percent with each cross‐sectional doubling of Metropolitan Statistical Area (MSA) jobs. Using the RELU‐TRAN structural computable general equilibrium model of the Chicago MSA, we simulate the equilibrium effects of a 24 percent population increase projected from 2000 to 2030 by the Chicago Metropolitan Agency for Planning. If no new road capacity is added, then congestion per mile increases. Although the urbanized land area increases by 19 percent, indicating sprawl, the vehicle miles traveled (VMT) per car‐trip decreases by 1.31 percent and the VMT per car‐trip to work decreases by 2.78 percent. Car travel time increases by only 6.25 percent and commuting time by only 4.54 percent, from 30.3 minutes in 2000 to 31.7 in 2030 or 3.4 seconds per year. We further explore the effects of new road capacity, gasoline prices, public transit speed, fuel economy gains, limits on suburban construction, and importantly, the cross‐elasticity of public transit use with respect to car times. The availability of public transportation, economizing on nonwork travel, and land use adjustments that increase job‐residence proximity keep times stable.     

Designing Markets: Why Competitive Bidding and Auctions in Government Often Fail To Deliver

Governments continue to embrace the market‐like mechanisms of auctions and bidding. This essay considers how governments (as bid‐takers) and firms and nonprofits (as bidders) strategically interact in the design and implementation of these systems. I assess with regard to the uniqueness of bidding in government four principles on the role of: credible commitments, rational collusion, the setting of reserve prices, and heterogeneity among bidders. I also address recent calls for expanding the use of dynamic pricing in government.     

Facility Location Under Zone Pricing

Zone pricing consists in determining simultaneously several delivered prices together with the zones where these prices apply. A model and algorithm are proposed to determine optimal facility locations, prices, tariff-zones, and market areas in order to maximize the firm's profit under zone pricing. The resulting nonlinear mixed-integer program is tackled by projecting the objective function on the price space, solving repeatedly uncapacitated facility location problems for fixed values of the prices. The implicit profit function so defined is optimized by branch-and-bound. Computational results are reported.     

House prices and school choice: Evidence from Chicago's magnet schools’ proximity lottery

Studies of open school policies predict house prices to rise in areas that gain access to high-quality schools. However, excess demand may limit access to high-quality schools. We take advantage of changes in Chicago's schools’ admissions policies to test whether a higher probability of admission to magnet schools for students living within 1.5 miles leads to higher house prices. Results indicate that the 1997 and 2009 reforms increased house prices for homes within the 1.5 mile radius by about 4% and 12.6%, respectively. The higher probability of admission for black students after a consent decree was vacated in 2009 led to a significant increase in prices in predominantly African-American areas on the south side.     

Spatial Pricing Policies Reconsidered: Monopoly Performance and Location

This paper reexamines the welfare implications of three pricing regimes (mill, uniform, and discriminatory) for a monopoly. Assuming linear demand and constant marginal costs, I show that with the introduction of endogenous location choice, uniform delivered pricing may provide the highest social welfare when demands in different markets are sufficiently heterogeneous; whereas discriminatory pricing always dominates uniform pricing when demands in different markets are similar.     

SPATIAL HEDONIC MODELS OF AIRPORT NOISE,PROXIMITY, AND HOUSING PRICES*

ABSTRACT Despite the refrain that housing prices are determined by “location, location, and location,” few studies of airport noise and housing prices have incorporated spatial econometric techniques. We compare various spatial econometric models and estimation methods in a hedonic price framework to examine the impact of noise on 2003 housing prices near the Atlanta airport. Spatial effects are best captured by a model including both spatial autocorrelation and autoregressive parameters estimated by a generalized moments approach. In our preferred model, houses located in an area in which noise disrupts normal activities (defined by a day–night sound level of 70–75 decibels) sell for 20.8 percent less than houses located where noise does not disrupt normal activities (defined by a day–night sound level below 65 decibels). The inclusion of spatial effects magnifies the negative price impacts of airport noise. Finally, after controlling for noise, houses farther from the airport sell for less; the price elasticity with respect to distance is −0.15, implying that airport proximity is an amenity.