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Mobility Systems and Economic Growth: a Theoretical Analysis of the Long-Term Effects of Alternative Transportation Policies

Author

Listed:
  • Luigi Bonatti
  • Emanuele Campiglio
Abstract
We present an example of how public policies affect the evolution of the economy by influencing consumption habits, life styles and work attitudes. In particular, we show that governments can boost long-run growth by moving public investment away from collective transportation systems and towards infrastructures necessary for using private vehicles. Indeed, by augmenting the relative convenience of using private mobility systems, which are those more costly for the households, the government induces them to increase their labor supply so as to afford larger expenditures in transportation. This has long-term welfare implications depending also on the negative externalities associated with transport.

Suggested Citation

  • Luigi Bonatti & Emanuele Campiglio, 2009. "Mobility Systems and Economic Growth: a Theoretical Analysis of the Long-Term Effects of Alternative Transportation Policies," Department of Economics Working Papers 0907, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpde:0907
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    References listed on IDEAS

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    1. Alberto Alesina & Edward Glaeser & Bruce Sacerdote, 2005. "Work and Leisure in the U. S. and Europe: Why so Different?," Harvard Institute of Economic Research Working Papers 2068, Harvard - Institute of Economic Research.
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    3. Ward Romp & Jakob De Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 6-52, April.
    4. Olivier Blanchard, 2004. "The Economic Future of Europe," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 3-26, Fall.
    5. Leyden, K.M., 2003. "Social Capital and the Built Environment: The Importance of Walkable Neighborhoods," American Journal of Public Health, American Public Health Association, vol. 93(9), pages 1546-1551.
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    Cited by:

    1. Angelo Antoci & Marcello Galeotti & Davide Radi, 2011. "Financial Tools for the Abatement of Traffic Congestion: A Dynamical Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 38(3), pages 389-405, October.
    2. Emanuele Campiglio, 2013. "The structural shift to green services," DEM Working Papers Series 033, University of Pavia, Department of Economics and Management.

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