In spite of a growing recognition of the importance of supply conditions for the level and volatility of house prices, empirical work on housing supply outside the US is scarce. This paper considers various measures of housing supply in the Netherlands, where real house prices have roughly...

How should urban containment and the diversion of households to nearby residential areas be evaluated from a welfare economic perspective? Assuming the existence of a negative externality of city size, we develop a concise general equilibrium model for a mother city and a satellite. This...

Why has job growth over the past decades been weaker in the Dutch Randstad area than in surrounding regions? In a simultaneous equations analysis, we find that employment adjusts to the regional supply of labour. Net internal migration is predominantly determined by regional housing supply and...

We investigate the interaction of regional population and employment in a simu1taneous model, allowing for interregional commuting. The proposed dynamic specification distinguishes between short-run and equilibrium adjustment effects and it encompasses the lagged-adjustment specification that is...

Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesize that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment...

We study interaction between the trips of two types of drivers on a two-lane road who differ by their desired speeds. The difference in desired speeds causes congestion, because slow drivers force fast drivers to reduce their speed. An interesting aspect of this type of congestion is that...

This paper provides a link between car following theory and the economic theory of road congestion by means of a theory of speed choice. According to this theory speed choice is based on a trade-off between the benefits (shorter travel time) and cost (higher accident risk) of driving faster....

This paper studies the interaction between job mobility and housing mobility by considering the duration of commutes. Conventional models assume that the employrnent location has priority over the residentiallocation and that the latter is adapted to the former. This implies that the duration of...

Reimbursement of commuting costs by employers has attracted little attention from economists. We develop a theoretical model of a monopsonistic employer who determines an optimal recruitment policy in a spatial labour market with search frictions and show that partial reimbursement of commuting...

Although many researchers have investigated the value of open space in cities, few of them have compared them to the costs of providing this amenity. In this paper, we use the monocentric model of a city to derive a simple cost-benefit rule for the optimal provision of open space. The rule is...