Mauricio Arango

This paper uses data on prices and locations of garages, along with characteristics of all census tracts in New York City and Chicago, to build an objective market-driven measure of walkability for the two cities. The concept is as follows: as drivers wish to park close to their destination the cost of walking is embedded in parking prices. The paper lays out and estimates a theoretical model of price competition between garage operators that explains the dynamic between parking prices and the cost of walking, this produces a framework to measure walkability that can be extended to other cities. The Walkability Index presented in this paper combines several elements considered to affect walkability by the urban planning literature. This index shows a strong correlation with the proportion of non-car commuters.

Taxes on bank debit transactions have been used as an easy way to collect substantial revenue, especially during economic crisis. The existing literature has found evidence of distortionary effects of this policy on money demand and interest rates, even if the tax is charged at very low rates. Instead of studying these monetary topics, this paper develops a general equilibrium model with no money and no nominal rigidities to explain the effects of bank debit taxes on real resources allocation, welfare, and revenue. The study demonstrates that bank debit taxes reduce the size of the financial system and increase deadweight loss. The model also shows that under certain plausible situations, these levies reduce the size of the sector that manufactures high-value goods.