The self-financing rule of transport facilities says that under a certain set of technical conditions the revenue from congestion tolls exactly covers the capacity cost of transport facilities. We reexamine the rule in the transport network embedded in land market. When the lengths of transport network are fixed, the rule holds under the same set of conditions. However, when the network’s link lengths change to adjust to the land market, the rule holds only when there is no traffic at the network’s boundary. The Henry George Theorem for financing the fixed cost of transport facilities is modified accordingly. Joint with Sanggyun Yu.
Spatial Economics Seminar Amsterdam
- Speaker(s)
- Hyok-Joo Rhee (Seoul National University of Science and Technology, Republic of Korea)
- Date
- Monday, 7 October 2013
- Location
- Amsterdam