working paper

Ameliorating Congestion by Income Redistribution

Publication Date

October 30, 1993

Associated Project

Author(s)

Amihai Glazer, Kai A. Konrad

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.

Suggested Citation
Amihai Glazer and Kai A. Konrad (1993) Ameliorating Congestion by Income Redistribution. Working Paper No. 192. Institute of Transportation Studies, UC Irvine: University of California Transportation Center. Available at: https://escholarship.org/uc/item/7k0387sw.