nep-tre New Economics Papers
on Transport Economics
Issue of 2012‒07‒08
eleven papers chosen by
Erik Teodoor Verhoef
VU University Amsterdam

  1. : Estimating transport costs and trade barriers in China. Direct evidence from Chinese agricultural traders By Zhigang Li; Xiaohua Yu; Yinchu Zeng; Rainer Holst
  2. Cost of Traffic Injuries in Latin America By Esteban Diez-Roux; Kavi Bahlla
  3. Modal choice and optimal congestion By Quentin David; Renaud Foucart, ECARES, Université libre de Bruxelles
  4. Shannon's measure of information, path averages and the origins of random utility models in transport itinerary or mode choice analysis By Marc Gaudry; Emile Quinet
  5. How Big? The Impact of Approved Destination Status on Mainland Chinese Travel Abroad By Shawn Arita; Sumner La Croix; James Mak
  6. Optimal transport and Cournot-Nash equilibria By Adrien Blanchet; Guillaume Carlier
  7. Building a highway linear referencing system from pre-existing reference marker measurements for transportation data management By Bigham, John M; Kang, Sanghyeok
  8. Cost optimisation in freight distribution with cross-docking: the N-echelon location routing problem By Jesus Gonzalez-Feliu
  9. Mobilité durable et "imbroglio" institutionnel : quelle compatibilité ? Le cas de l'agglomération grenobloise By Pauline Coiffard; Catherine Figuière
  10. Regionalizing infrastructure for deepening market integration: the case of East Africa By Kessides, Ioannis N.; Benjamin, Nancy C.
  11. THE IMPACT OF THE BEFORE-AFTER ERROR TERM CORRELATION ON WELFARE MEASUREMENT IN LOGIT By Paolo Delle Site; Marco Valerio Salucci

  1. By: Zhigang Li; Xiaohua Yu; Yinchu Zeng; Rainer Holst
    Abstract: Using unique survey data on agricultural traders in China in 2004, this study provides direct evidence on the significance of inter-regional trade barriers and their key components. Our major findings are as follows. (1) The trade barriers within China are fairly small, accounting for about 20 percent of trade value. (2) Transport-related costs and artificial barriers contribute about equally to the trade barriers. (3) Labor and government taxes are the two largest proportions of total transport costs, and account for 35% and 30%, respectively. (4) Road quality is crucial for reducing transport costs within China. Increasing transport speed by 1 km per hour would, mainly due to improved fuel-burning efficiency and reduced labor requirements, decrease total transport costs for Chinese agricultural traders by 0.6 percent.
    Keywords: Transport Costs, China, Agricultural Traders, Infrastructure
    JEL: E58 R21 R28
    Date: 2012–05
    URL: http://d.repec.org/n?u=RePEc:bbv:wpaper:1209&r=tre
  2. By: Esteban Diez-Roux; Kavi Bahlla
    Abstract: This presentation was given by Esteban Diez-Roux and Kavi Bahlla at the Ibero-American Road Safety Conference (CISEV) which took place in Bogota, Colombia in June, 2012. This presentation describes how the high rate of traffic accidents in Latin America places a burden on economies in the region. The authors present the methods and results of a study which assigns a monetary cost to these deaths and injuries as a percent of GDP. The presentation ends with conclusions and implications.
    Keywords: Health :: Health Care, Infrastructure & Transport :: Roads & Highways
    Date: 2012–06
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:72998&r=tre
  3. By: Quentin David (CREA, University of Luxembourg); Renaud Foucart, ECARES, Université libre de Bruxelles (ECARES, Université libre de Bruxelles)
    Abstract: We study the choice of transportation modes within a city where commuters have het- erogeneous preferences for a car. As in standard models of externalities, the market outcome never maximizes aggregate welfare. We show that in the presence of multiple equilibria prob- lems of coordination can worsen this result. Hence, a social planner focusing on the marginal impact of policies may miss the largest source of inefficiency. We discuss two policy tools: taxation and traffic separation (e.g. exclusive lanes for public transportation). Setting the optimal levels of taxation and of traffic separation constitutes a necessary but not a sufficient condition to reach the first best equilibrium. Comparing the relative efficiency of both poli- cies, we show that traffic separation should be preferred for large-scale policies while taxation better applies to marginal modifications of commuting patterns.
    Keywords: Modal choice, Coordination, Network effect, Cross-modal congestion
    JEL: R4 L5 H2
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:luc:wpaper:12-03&r=tre
  4. By: Marc Gaudry (AJD - Agora Jules Dupuit - Université de Montréal - Département de sciences économiques); Emile Quinet (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris - INRA, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)
    Abstract: We interpret the often mentioned difference between Logsum and average utility in terms of Shannon's (1948) information measure S, leading to a Path Aggregation THeorem (PATH). It states that, in transport networks where unique measures of the utility of multiple paths are required for demand model formulation purposes and the true path choice model is Multinomial Logit (MNL), constructs based on weighted averages of path characteristics derived from multipath assignments always underestimate the utility of multiple paths, a deficit exactly equal to S (corresponding to minus-one times entropy) if the weights are the path choice probabilities. We study the properties of this S measure of aggregation error, along with those arising from other types of averages of path characteristics, outlining some implications for demand estimation and project appraisal. Notably, the validity of the PATH does not depend on the specific contents of the representative utility functions (RUF) associated to paths, such as their mathematical form or their eventual inclusion of alternative-generic constants (AGC). We show by simulation that averaging modes or sub-modes ― a frequent feature of traffic modeling studies ― can lead to important error in terms of level of traffic and welfare measurement. Concerning the mathematical form of the RUF, we recall that, after the publication of Abraham's 1961 random utility model (RUM) of road path choice deriving the Probit specification based on the Gaussian error distribution (and another specification based on the Rectangular error distribution), French engineers used this seminal approach as justification of road path choice formulae then in current use and assigned the name "Abraham's Law" to a particular standard one, effectively a "Logarithmic Logit" close to the logarithmic RUF carefully specified for Logit mode choice by Warner in 1962. For transit problems, the preference went to a linear RUF, as evidenced in Barbier's casual binomial Probit application to bus and metro, published in 1966, which may have inspired the later generalizations by Domencich and McFadden. In view of many founders' conscientiously crafted nonlinear Logit formulations, and more generally of the repeatedly demonstrated presence of nonlinearity in RUF path and mode specifications since their careful work 50 years ago, we analyze the impact of such nonlinearity on S. This impact is tractable through a comparison of measures S2 and S1 associated with two path choice models differing only in RUF form, as determined by Box-Cox transformations applied to their level-of-service (LOS) variables. We show that, although the difference between measures S2 and S1 may reach a minimum or a maximum with changes in LOS, the solution for such a turning point cannot be established analytically but requires numerical methods: the demonstrable impact on S of nonlinearity, or asymmetry of Logit curve response, is tractable, but only at non trivial computational cost. We point out that the path aggregation issue, whereby aggregation of paths by Logsums differs from aggregation of their characteristics by averages, is not limited to public transit (PT) projects with more or less "common" lines competing in dense urban transit networks (our particular Paris predicament motivating the analysis) but also arises in other modes whenever distinct itineraries or lines compete within a single mode. Concerning dense urban PT networks, we hypothesize that Logsums based on multiple path assignments treating all transit means (about 10 in our problem) as one modal network should, using Ockham's razor, be simpler than the insertion of a layer of choice hierarchies among such urban means based on non nested specifications embodying assumptions on the identity of "higher" and "lower" means, the latter reasserting the multiple path access problems the hierarchies were designed to solve in the first place. Concerning road networks, the proper accounting of multiple path use to avoid Shannon aggregation error points to an abandonment of Wardrop's equilibrium in favor of Logit choice. This completed shift should favor transit when it is the minority mode.
    Keywords: Multipath assignment ; Aggregation of path characteristics ; Path aggregation ; Inclusive values ; Multinomial Logit ; Shannon's measure of information ; Origins of Random Utility Models (RUM) ; Probit ; Logarithmic Logit ; Abraham's Law of traffic assignment ; Kirchhoff's distribution ; Non linearity of Representative Utility Functions (RUF) ; Box-Cox transformations (BCT) ; French engineers ; Claude Abraham ; Stanley Warner ; Michel Barbier ; Robert Fogel ; Daniel McFadden ; Abraham-McFadden approach ; EOLE ; Paris RER E westerly extension ; Public Transit (PT) assignment ; transit hierarchies ; SAMPERS ; PRISM ; CUBE Voyager ; VISUM ; NODUS
    Date: 2012–06
    URL: http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00713168&r=tre
  5. By: Shawn Arita (University of Hawaii at Manoa, Department of Economics); Sumner La Croix (UHERO, University of Hawaii at Manoa); James Mak (UHERO, University of Hawaii at Manoa)
    Abstract: ChinaÕs Approved Destination Status (ADS) policy governs foreign leisure travel by citizens to ADS-designated countries. To model the effects of ADS on Chinese visitor arrivals, we specify a model of demand for a representative Chinese consumer who values trips to n differentiated foreign destinations. Using panel data for Chinese visitor arrivals for 61 countries from 1985 to 2005, we estimate fixed effects models accounting for selection effects and a semiparametric matched difference-in-differences (DID) model. The semiparametric matched DID estimates indicate that ADS increased Chinese visitor arrivals annually by 10.5 to 15.7 percent in the three-year period following ADS designation.
    Keywords: Approved Destination Status, ADS, China, Tourism
    JEL: F13 F14 L83
    Date: 2012–06
    URL: http://d.repec.org/n?u=RePEc:hae:wpaper:2012-3&r=tre
  6. By: Adrien Blanchet (GREMAQ - Groupe de recherche en économie mathématique et quantitative - CNRS : UMR5604 - Université des Sciences Sociales - Toulouse I - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - INRA : UMR); Guillaume Carlier (CEREMADE - CEntre de REcherches en MAthématiques de la DEcision - CNRS : UMR7534 - Université Paris IX - Paris Dauphine)
    Abstract: We study a class of games with a continuum of players for which Cournot-Nash equilibria can be obtained by the minimisation of some cost, related to optimal transport. This cost is not convex in the usual sense in general but it turns out to have hidden strict convexity properties in many relevant cases. This enables us to obtain new uniqueness results and a characterisation of equilibria in terms of some partial differential equations, a simple numerical scheme in dimension one as well as an analysis of the inefficiency of equilibria.
    Keywords: Cournot-Nash equilibria ; mean-field games ; optimal transport ; externalities ; Monge-Amp\ère equations ; convexity along generalised geodesics
    Date: 2012–06–25
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00712488&r=tre
  7. By: Bigham, John M; Kang, Sanghyeok
    Abstract: Abstract In order to manage events associated with highways, data systems have been developed to store relevant event information. To reap the full benefits of Geographic Information System technologies, the relative locations can be integrated into a linear referencing system. The objective of this paper is to present a methodology for building a highway linear referencing system by applying pre-existing marker measurements to a digital street network. The system was developed for locating motor vehicle collisions in California and resulted in improved accuracy compared to a previously developed system. Nearly 50% of the relative collision locations based on the two different systems were within one meter of each other, but 4.1% were greater than 1,000 meters. Differences in collision locations were likely due to improved accuracy because: 1) an increased number of reference markers were used, 2) all route realignments were accounted for, and 3) all previously identified errors were corrected. 
    Keywords: Transportation and Highway Engineering, Data Processing and Data Processing Technology/Technician, linear referencing systems, highway collision geocoding, GIS for transportation, California postmile markers
    Date: 2012–06–01
    URL: http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt4d51d5cv&r=tre
  8. By: Jesus Gonzalez-Feliu (LET - Laboratoire d'économie des transports - CNRS : UMR5593 - Université Lumière - Lyon II - Ecole Nationale des Travaux Publics de l'Etat)
    Abstract: Freight transportation constitutes one of the main activities that influences economy and society, as it assures a vital link between suppliers and customers and it represents a major source of employment. Multi-echelon distribution is one of the most common strategies adopted by the transportation companies in an aim of cost reduction. Although vehicle routing problems are very common in operational research, they are essentially related to single-echelon cases. This paper presents the main concepts of multi-echelon distribution with cross-docks and a unified notation for the N-echelon location routing problem. A literature review is also presented, in order to list the main problems and methods that can be helpful for scientists and transportation practitioners.
    Keywords: location-routing problems, multi-echelon distribution, cross-docking, combinatorial optimisation, literature review
    Date: 2012–03–14
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00565329&r=tre
  9. By: Pauline Coiffard (Grenoble 2 UPMF - Université Pierre Mendès France - Université Pierre Mendès-France - Grenoble II); Catherine Figuière (CREG - Centre de recherche en économie de Grenoble - Université Pierre Mendès-France - Grenoble II : EA4625)
    Abstract: L'objectif de cette communication est d'établir un premier diagnostic de l'offre de transport dans l'agglomération grenobloise afin d'évaluer si cette dernière s'avère compatible avec une mobilité plus durable. Ce papier, à vocation exploratoire, révèle dans un premier temps le bon positionnement de l'offre de grenobloise, avec une dynamique temporelle et géographique importante. Néanmoins, au regard de l'importance des projets engagés, on pourrait s'attendre à un recours plus systématique de la population aux différents modes de transports mis à sa disposition. La simplification de l'imbroglio institutionnel local peut dès lors être envisagée comme une piste de réflexion en vue d'améliorer notamment l'intermodalité, fondement d'une mobilité plus durable.
    Keywords: développement durable ; agglomération ; transport ; transport en commun ; institution ; Grance ; Grenoble
    Date: 2012–06–11
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00713065&r=tre
  10. By: Kessides, Ioannis N.; Benjamin, Nancy C.
    Abstract: The East African Community has long recognized that regional economic integration can yield significant welfare gains to its member states. To that end, the community has been making steady progress towards the removal of tariffs and quantitative restrictions to trade. Moreover, in recent years, there has been an increasing recognition that: (a) even greater welfare gains could be realized through deeper forms of regional integration which entail harmonization of legal, regulatory and institutional frameworks; and (b) reforms that reduce cross-border transaction costs and improve the performance of"backbone"infrastructure services are arguably even more important for the creation of an open, unified regional economic space than trade policy reforms narrowly defined. Disparities of regulatory treatment across borders can introduce distortions that hinder both cross-border trade and the aggregate flows of investment on a regional basis. Regulatory harmonization and infrastructure regionalization could make a significant contribution to the region's economic development by promoting a more efficient utilization of its human and physical resources, enhancing connectivity, reducing the costs of trade, and facilitating the integration of the continent with the global economy.
    Keywords: Transport Economics Policy&Planning,Regional Economic Development,Trade and Regional Integration,Emerging Markets,Economic Theory&Research
    Date: 2012–06–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6113&r=tre
  11. By: Paolo Delle Site (La Sapienza University); Marco Valerio Salucci (La Sapienza University)
    Abstract: We consider random utility models with independent and identical type I extreme value distribution of the error terms. To compute the expectation of the compensating variation it is necessary to consider the correlation of the error terms between the state before the price and quality change and the state after. We investigate the impact of the before-after correlation of the error terms on the expectation of the compensating variation. We consider each error term to be correlated between the before state and the after state independently and identically across alternatives. We prove the theoretical property that in the case without income effect the logsum formula holds for any assumption on the before-after correlation. We use numerical evidence to show that in the case with income effect the variability of the expectation of the compensating variation with the assumption on the before-after correlation increases with the size of the income effect.
    Keywords: logit, compensating variation, before-after correlation, income effect
    JEL: C25 D60
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:rcr:wpaper:04_12&r=tre

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