Hi, happy to find this page. We are actually working on this topic in a particolar feature. This does not deal with congestion or any physical externality but with tax externality.
main finding : an improvement of the quality of a good, can result in a welfare reduction.
Modelling context : discrete choice modelling, choice between two goods and a numeraire good. two goods have quality attributes. Goods have different tax rates. taxes are treated as transfered : they are distributed to households. we can add externality to the model, but that does not ... (read more)
Hi, happy to find this page. We are actually working on this topic in a particolar feature. This does not deal with congestion or any physical externality but with tax externality.
main finding : an improvement of the quality of a good, can result in a welfare reduction.
Modelling context : discrete choice modelling, choice between two goods and a numeraire good. two goods have quality attributes. Goods have different tax rates. taxes are treated as transfered : they are distributed to households. we can add externality to the model, but that does not ... (read more)