Model of the Day

Economic model of the day, that is. Ryan Avent excerpts a bit from an interesting paper by Edward Glaeser, Matthew Kahn, and Jordan Rappaport. Let WRich be a rich person's opportunity cost of time, F be the fixed time cost of public transportation, and C be the fixed time cost of driving you get:

Alternatively, if WRichF

That seems about right for some of our larger metro areas.