Parking, Transit, and Employment in a Cbd

95-11

Posted: 15 Nov 1996

See all articles by Richard Voith

Richard Voith

Econsult Corporation; University of Pennsylvania - Wharton School, Department of Real Estate

Date Written: December 1995

Abstract

In this paper we present a general equilibrium model to examine the role of parking and transit subsidy policy on CBD size, CBD land values, and the market shares of cars and transit. The three main features of the model are: 1) agglomeration economies increase continuously with labor market size; 2) congestion arises from auto use only; transit is noncongestible; 3) locational equilibrium is maintained in the sense that firms and individuals cannot reduce costs or increase utility by moving, given equilibrium prices and city size. We derive the conditions under which parking taxes can be levied and used to subsidize transit and increase equilibrium CBD size and land values. We compute an optimal parking tax that maximizes CBD size and land values and derive relationships among parking taxes, transit use, and congestion. We find nonmonotonic relationships among parking taxes, land values, and transit use. The views expressed here are solely those of the author and do not necessarily represent the views of the Federal Reserve Bank of Philadelphia or of the Federal Reserve System.

JEL Classification: R12, R41

Suggested Citation

Voith, Richard, Parking, Transit, and Employment in a Cbd (December 1995). 95-11, Available at SSRN: https://ssrn.com/abstract=9179

Richard Voith (Contact Author)

Econsult Corporation ( email )

Philadelphia, PA 19104
United States

University of Pennsylvania - Wharton School, Department of Real Estate ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215 382 1894 (Phone)

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