  We study the steady-state behavior of a driven non-equilibrium lattice gas of
hard-core particles with next-nearest-neighbor interaction. We calculate the
exact stationary distribution of the periodic system and for a particular line
in the phase diagram of the system with open boundaries where particles can
enter and leave the system. For repulsive interactions the dynamics can be
interpreted as a two-speed model for traffic flow. The exact stationary
distribution of the periodic continuous-time system turns out to coincide with
that of the asymmetric exclusion process (ASEP) with discrete-time parallel
update. However, unlike in the (single-speed) ASEP, the exact flow diagram for
the two-speed model resembles in some important features the flow diagram of
real traffic. The stationary phase diagram of the open system obtained from
Monte Carlo simulations can be understood in terms of a shock moving through
the system and an overfeeding effect at the boundaries, thus confirming
theoretical predictions of a recently developed general theory of
boundary-induced phase transitions. In the case of attractive interaction we
observe an unexpected reentrance transition due to boundary effects.
