This paper provides theoretical and empirical analyses of the effect of transportation subsidies on urban sprawl in a two-mode urban spatial model. Comparative static analysis shows, among other things, that the urban area contracts with a public transit subsidy but expands with an auto subsidy....

In this paper, we extend the partial equilibrium urban model of DeSalvo (1985) to include mode choice. DeSalvo demonstrated that the urban model of Muth (1969) was robust to the extension to leisure choice. We show that the model is robust to mode choice as well. In addition, we derive the...