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on Transport Economics |
| By: | De Borger B.; Proost S. |
| Abstract: | This paper considers various policy measures to reduce traffic externalities in cities, including externality-reducing investments, tolls, emission standards, low emission zones, and bypass capacity to guide traffic around the city center. Using a simple model that distinguishes local and through traffic, we study the optimal use of these instruments by an urban government that cares for the welfare of its inhabitants, and we compare the results with those preferred by a federal authority that takes into account the welfare of all road users. Our results include the following. First, compared to the federal social optimum, we show that the city government will over-invest in externality-reducing infrastructure whenever this infrastructure increases the generalized cost of transit traffic. Second, comparing emission standards and road tolls, we find that cities with a lot of commuters will favor tolls, even though from the federal perspective standards are better. Third, when implementing low emission zones, the urban government will set both the fee for non-compliance and the standard at a higher level than the federal government. Moreover, at sufficiently high transit levels the urban government will prefer imposing a toll instead of implementing a low emission zone. Fourth, if the city can toll the urban infrastructure, it will only invest in bypass capacity when it is allowed to earn extra toll revenues on the bypass that exceed investment costs. Although the paper focuses on non-congestion externalities, most insights also hold in the presence of congestion. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2012013&r=tre |
| By: | Paul Anderson; Andrew Owen; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Accessibility is traditionally considered to be a property of a point or region in space, and to be invariant over time (or at least over some computationally convenient time interval). How- ever, a locations accessibility can vary over time on a wide range of scales. This temporal variation is especially significant for schedule-based transportation systems. Current measures of accessibility generally reflect the accessibility only at points in time corresponding to the departures of one or more trips; accessibility between these time points remains unconsidered and undefined. Consequently, these measures are insensitive to changes in route frequency and the distribution of trip departure times. Furthermore, these approaches ignore the disutility experienced by a system user who is limited to departing or arriving at scheduled times rather than at preferred times. As a result, they systematically overestimate the accessibility experienced by users of scheduled transportation systems. We establish new methods for representing the accessibility provided by a schedule-based transportation system from a specific location as a continuously-defined accessibility function (CDAF) of desired departure time, defined for all time points. Using schedule and route information from metropolitan transit providers, we demonstrate the application of these methods to gain new insight into the accessibility provided by real-world transportation systems. Four examples are developed to represent common service types in metropolitan transit networks. The results confirm that accessibility is significantly overestimated by measuring single points and show that trip frequency is more valuable for sustained accessibility than high accessibility on individual trips. |
| Keywords: | public transport, accessibility, scheduled transportation, mass transit |
| JEL: | R41 R42 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:thetimebetween&r=tre |
| By: | Pavithra Parthasarathi; David Levinson; Hartwig Hochmair (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Road networks have an underlying structure. This structure is defined by the layout, arrangement and the connectivity of the individual network elements, the road segments and their intersections. The differences in network structure exist across and within networks. Travelers perceive and respond to these differences in underlying network structure and complexity. This paper extends the analysis to understanding the underlying theory of why network structure influences travel. Specifically the focus is on the influence of network structure on travel time perception. The hypothesis here is that network design influences traveler perceptions, more specifically the perceptions of travel distance and time. This perception of travel distance and time in turn influences the actual travel by affecting choice of destination, mode, route, and whether to engage in activities. |
| Keywords: | network structure, time perception, travel behavior |
| JEL: | R41 L91 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:networkstructureandtraveltimeperception&r=tre |
| By: | WALTHER Olivier; REITEL Bernard |
| Abstract: | This paper provides evidence of how national and linguistic borders affect the structure of policy networks. Our analysis of the Basel metropolitan region located across Switzerland, France and Germany considers the case of cross-border public transportation. Using a social network approach based on 44 actors, we show that national borders play a diminishing role in the formation of policy networks for both information exchange and decision making but still limit interactions between German and French-speaking actors. Local actors develop different brokerage roles according to their country of origin, with Swiss actors acting as coordinator and representative brokers vis-à-vis players located in France and Germany. |
| Keywords: | policy networks; cross-border metropolitan region; transport policies; social network analysis; Basel; Switzerland; France; Germany |
| JEL: | F15 F16 J61 R42 R50 R58 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2012-26&r=tre |
| By: | Blonigen, Bruce A.; Cristea, Anca D. |
| Abstract: | While significant work has been done to examine the determinants of regional development, there is little evidence on the contribution of air services toward this outcome. This paper exploits the unexpected market changes induced by the 1978 Airline Deregulation Act to bring new evidence on the link between airline traffic and local economic growth. Using data for almost 300 Metropolitan Statistical Areas (MSAs) over a two decade time period centered around the policy change, we exploit time variation in long-run growth rates to identify the effects of airline traffic on population, income and employment growth. Our results suggest that air service has a significant positive effect on regional growth, with the magnitude of the effects differing by MSA size and industrial specialization. |
| Keywords: | airline traffic; urban growth; regional development; Airline Deregulation Act; air transport |
| JEL: | R1 O18 R4 |
| Date: | 2012–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:40304&r=tre |
| By: | De Borger B.; Proost S. |
| Abstract: | In this paper, we provide a selective survey of the recent literature that deals with transport policy competition between governments. The paper shows the potential relevance of strategic behaviour by governments in deciding on prices (taxes, tolls) and investment in infrastructure capacity. The severity and the welfare effects of tax exporting behaviour and of horizontal tax and expenditure competition strongly depend on whether the transport links controlled by the different governments are strategic complements or substitutes. The scarce transport economics literature on vertical competition between hierarchical governments has so far mainly focused on the question which government level should be responsible for providing and financing local infrastructure. The survey identifies a number of gaps in the literature that may be useful avenues for further research. These include more detailed analysis of the implications of vertical tax and expenditure competition between hierarchical government levels, a political economy approach to problems of transport decision-making with multiple government levels and, most importantly, more empirical analysis to document the relevance of the theoretical literature. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:ant:wpaper:2012014&r=tre |
| By: | Shawn Arita; Sumner La Croix (Department of Economics, University of Hawaii-Manoa and University of Hawaii Economic Research Organization (UHERO)); James Mak (Department of Economics, University of Hawaii-Manoa and University of Hawaii Economic Research Organization (UHERO)) |
| Abstract: | China’s “Approved Destination Status (ADS) policy allows citizens of mainland China to take pleasure trips abroad on group package tours to countries that have negotiated and implemented agreements with China. In this paper, we examine the reasons for this unique preferential and incremental travel liberalization system and how it affects mainland Chinese outbound pleasure travel. |
| Keywords: | Tourism, Chinese Outbound Travel, China Approved Destination Status Policy |
| JEL: | F13 F14 L83 |
| Date: | 2012–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201215&r=tre |
| By: | Gesa Matthes |
| Abstract: | Following the discussion on reurbanization (changing intra-regional migration patterns), our research project treats transport-related consequences of this spatial development in German city regions. The hypothesis is that reurbanization bears potential to spread environmentally friendly ways of organizing daily mobility – but that the chance of those positive effects might be given away, if policy does not accompany the process adequately. The aim of this project is to assess the current impact of reurbanization on passenger transport in city regions and to find further potential to reduce motorized passenger kilometres in order to deduce first planning approaches. This paper focuses on the question whether a household decides to move or to stay in its current dwelling and also analyses how the results vary in time and space. After having deduced factors on the decision to move, a logistic regression is run on the SOEP-data. The analysis shows that observed differences in time are mainly due to difference in behaviour regarding the factors ‘number of employed persons’ and the event ‘birth’ whereas spatial variation is mainly due to structural differences. |
| Keywords: | Relocation, move, migration, reurbanization, transport |
| JEL: | O18 O21 R14 R21 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp459&r=tre |
| By: | Stefan P.T. Groot (VU University Amsterdam); Henri L.F. de Groot (VU University Amsterdam, and Ecorys NEI); Paolo Veneri (OECD, Paris) |
| Abstract: | This study analyses the relation between education and commuting behaviour of Dutch workers. Results show that, ceteris paribus, higher educated workers commute further, both in terms of distance and time. In addition, higher educated workers are more frequent users of public transport and of bicycles. Furthermore, we find that higher educated workers are relatively more likely to commute towards agglomerated areas and areas that pay relatively high wages, while they are more likely to live in and commute from areas with higher land rents. |
| Keywords: | commuting; education; urban amenities; agglomeration |
| JEL: | R12 R21 R23 |
| Date: | 2012–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120080&r=tre |
| By: | Carlos Carrion; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | The dominant method for measuring values of travel time savings (VOT), and values of travel time reliability (VOR) is discrete choice modeling. Generally, the data sources for these models are: stated choice experiments, and revealed preference observations. There are few studies using revealed preference data. These studies have only used travel times measured by devices such as loop detectors, and thus the perception error of travelers has been largely ignored. In this study, the influence of commuters’ perception error is investigated on data collected of commuters recruited from previous research. The subjects’ self-reported travel times from surveys, and the subjects’ travel times measured by GPS devices were collected. The results indicate that the subjects reliability ratio is greater than 1 in the models with self-reported travel times. In contrast, subjects reliability ratio is smaller than 1 in the models with travel times as measured by GPS devices. |
| Keywords: | route choice, GPS data, choice dynamics, travel time reliability, network reliability, value of reliability, value of time. |
| JEL: | R41 R48 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:reliabilityratioperception&r=tre |
| By: | Pavithra Parthasarathi; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | This paper aims to look at the variation of network structure within a metropolitan area and relate it to observed travel, measured here as the average travel time to work. The Minor Civil Divisions (MCD) within the Twin Cities (Minneapolis, St. Paul) metropolitan area are chosen for this analysis. Quantitative measures, compiled from various sources, are used to capture the various aspects of network structure within each MCD. The variation of these measures within the metropolitan area is analyzed using spatial analyses. The measures of network structure are then related to observed travel using statistical regression models. The results confirm a relation between network structure and travel and point to the importance of understanding the underlying street network structure. |
| Keywords: | network structure, journey to work, travel time, time perception, travel behavior |
| JEL: | R41 L91 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:networkstructureandthejourneytowork&r=tre |
| By: | Wirsing, Stephan |
| Abstract: | Throughout the last decade, the telecommunications sector has been subject to substantial changes in most countries of the world. Increased computational power, higher transmission capacities in combination with an openly and independently designed transport layer for packet switched data (IP) allow for a vast degree of freedom regarding the architecture and independence of services. Especially the transition towards All-IP networks in both, the mobile and the fixed sector, is expected to further extend the scope for end user applications. The usability of the IP-protocol for multiple types of services enables their provision via the same network, and thus services become more independent from physical network infrastructure. Networks with these features are commonly referred to as Next Generation Networks (NGN) or Next Generation Access networks (NGA), respectively. In consequence, operators are confronted with the challenge to fulfill a large number of technological requirements that emerge from the huge variety of distinct service characteristics. -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse12:60346&r=tre |
| By: | Xuan Di; Henry Liu; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | In undergraduate transportation engineering courses, traffic assignment is a difficult concept for both instructors to teach and for students to learn, because it involves many mathematical derivations and computations. We have designed a multiplayer game to engage students in the process of learning route choice, so that students can visualize how the traffic gradually reach user equilibrium (UE). For one scenario, we employ a Braess' Paradox, and explore the phenomenon during the game-play. We have done the case-control and before-after comparisons. The statistical results show that, students who played the game improve their understanding of the Braess' Paradox more than those who did not play. Among game players, younger students benefit more in their learning; while those who are not comfortable with exploring a phenomenon on their own think this game not as effective as those who prefer hands-on learning experiences. |
| Keywords: | route choice, traffic assignment, user equilibrium, equilibration, education, Braess' Paradox |
| JEL: | A22 R41 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:marc-game&r=tre |
| By: | David Giacomin; Luke James; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Because people seek to minimize their time and travel distance (or cost) when commuting, the circuity–the ratio of network distance traveled to the Euclidean distance between two points–plays an intricate role in the metropolitan economy. This paper seeks to measure the circuity of the United States’ 51 most populated Metropolitan Statistical Areas and identify trends in those circuities over the time period from 1990- 2010. With many factors playing a role such as suburban development and varying economic trends in metropolitan areas over this timeframe, much is to consider when calculating results. In general, circuity is increasing over time. |
| Keywords: | network circuity, directness, travel behavior, metropolitan comparisons |
| JEL: | R41 R42 H54 L91 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:circuitytrends&r=tre |
| By: | Michael Iacono; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | With the interstate system substantially complete, the majority of new investment in highways is likely to take the form of selective capacity expansion projects in urban areas, along with incremental expansions and upgrades to expressway or freeway standards of existing intercity highway corridors. This paper focuses specifically on the latter type of project, rural highway expansions designed to connect smaller outstate cities and towns, and examines their effects on industry-level private earnings and local employment. We examine three case study projects in rural Minnesota and use panel data on local earnings and employment to estimate the impacts of the improvements. Our results indicate that none of the projects studied generated statistically significant increases in earnings or employment, a finding we attribute to the relatively small time savings associated with the projects and the maturity of the highway network. We suggest that for rural highway expansion projects, as with other types of transportation projects, user benefits should be a primary evaluation criterion rather than employment impacts. |
| Keywords: | network expansion, economic evaluation, regional growth, rural development, economic development |
| JEL: | O18 R42 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:ruralexpansion&r=tre |
| By: | Schneir, Juan Rendon; Xiong, Yupeng |
| Abstract: | Due to the high costs associated with the deployment of the passive infrastructure of FTTH networks, operators ponder the possibility of making co-investments based on a network sharing model. This article describes the strategic and economic aspects of network sharing in FTTH/PON architectures. The capabilities of present and future versions of PON architectures and the cost implications of a network sharing model are described. Moreover, the minimum price of the access line necessary to recover the investment is derived. -- |
| Keywords: | FTTH,cost,network sharing,PON |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse12:60397&r=tre |
| By: | Martijn Kobus (VU University Amsterdam); Eva Gutierrez Puigarnau (VU University Amsterdam); Piet Rietveld (VU University Amsterdam); Jos Van Ommeren (VU University Amsterdam) |
| Abstract: | We introduce a methodology to estimate the effect of parking prices on car drivers' choice between street and garage parking. Our key identifying assumption is that the marginal benefit of parking duration does not depend on this choice. The endogeneity of parking duration is acknowledged in the estimation procedure. We apply the methodology to an area where cruising for parking is absent, street parking is ubiquitous and garage parking is discretely located over space. So, in this area, the average distance to the final destination is longer for garage parking than for street parking. We find that drivers are willing to pay a premium for street parking which ranges from euro 0.35 to euro 0.58. Given a parking duration of one hour, we find that the demand for street parking is extremely price elastic: the price elasticity of demand for the share of street parking is -4. However, the price elasticity is much smaller for shorter parking durations. Our estimates imply that even small reductions in street parking prices induce a strong increase in the stock of cars parked on-street. Our estimates also imply that a policy which contains an on-street premium (so street prices exceed garage prices) is welfare improving, because drivers with longer parking durations are induced to use parking locations that are, on average, farther away. |
| Keywords: | street parking; garage parking |
| JEL: | R48 |
| Date: | 2012–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120040&r=tre |
| By: | Carlos Carrion; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | Carrion and Levinson (2012) studied the bridge choice behavior of commuters before and after a new bridge opened to the public. This bridge replaced the previously collapsed I-35W bridge in the metro area of Minneapolis-St. Paul. The original I-35W bridge collapsed on August 1st 2007, and the replacement bridge opened to the public on September 18th 2008. This study extends Carrion and Levinson (2012) by considering explicitly the day-to-day behavior of travelers, and by also considering the previously excluded subjects that are transitioning between bridge alternatives not including the I-35W bridge. The primary results indicate that the subjects react to day-to-day travel times on a specific route according to thresholds. These thresholds help discriminate whether a travel time is within an acceptable margin or not, and travelers may decide to abandon the chosen route depending on the frequency of travel times within acceptable margins. The secondary results indicate that subjects previous experience, and perception of the alternatives also influence their decision to abandon the chosen route. |
| Keywords: | route choice, GPS data, choice dynamics, equilibration. |
| JEL: | R41 R48 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:routedynamics&r=tre |
| By: | Abelson, Peter; Joyeux, Roselyne; Mahuteau, Stephane |
| Abstract: | This paper examines the structure of house prices across the city, in this case Sydney, as an aid to urban development strategy and in particular to determine the potentially positive effects of public transport and negative effects of residential density on property prices. We model median house prices in 626 suburbs and achieve a high level of explanation. Distances from the CBD and from the coast are dominant factors in explaining house prices in Sydney. Predictably house and lot size are also highly significant factors. On the other hand a high propensity for violent crime significantly reduces property values. Over the whole city distance to rail station is not a statistically significant variable, but in suburb groups that are poorly served by other modes, median house prices fall significantly with increased distances to station. We found a similar but weaker result for access to high frequency buses. Contrary to expectation we found that higher density is marginally associated with higher median prices. However as the density variable is correlated (negatively) with median land area and, to a lesser extent, with distance to CBD, we would be cautious about concluding that density has no negative effect on house prices. |
| Keywords: | House prices, Spatial modelling, Public transport, Urban density, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fli:wpaper:26086&r=tre |
| By: | Bruce A. Blonigen; Anca D. Cristea |
| Abstract: | While significant work has been done to examine the determinants of regional development, there is little evidence on the contribution of air services toward this outcome. This paper exploits the unexpected market changes induced by the 1978 Airline Deregulation Act to bring new evidence on the link between airline traffic and local economic growth. Using data for almost 300 Metropolitan Statistical Areas (MSAs) over a two decade time period centered around the policy change, we exploit time variation in long-run growth rates to identify the effects of airline traffic on population, income and employment growth. Our results suggest that air service has a significant positive effect on regional growth, with the magnitude of the effects differing by MSA size and industrial specialization. |
| JEL: | O18 R11 R4 |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18278&r=tre |
| By: | Andrew Owen; Paul Anderson; David Levinson (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota) |
| Abstract: | The factors influencing commute mode choice are a subject of ongoing research and policy. Existing literature explores a wide range of factors which may influence mode choice; many of these focus on demographic factors as well as user preferences and perception, thereby highlighting the unique characteristics of each mode. This analysis hypothesizes that mode share, the aggregate expression of individuals' mode choices, is determined in large part by more fundamental properties of transportation systems. Accessibility, which measures the ease of reaching destinations, is used as a tool for comparing modes which focuses on their properties as abstract transportation systems. It explores the potential to predict the relative commute shares of non-auto and auto modes from the relative accessibility provided by each. Using public data sources and methods selected for their simplicity and ease of interpretation, a model is estimated which accounts for 41% of the variation in commute mode share at the block group level in the Minneapolis--Saint Paul, MN metropolitan area. |
| Keywords: | accessibility, mode choice, travel behavior |
| JEL: | R41 R42 H43 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:nex:wpaper:relativeaccessibilityandthechoiceofmodes&r=tre |
| By: | Hugo E. Silva (VU University); Erik T. Verhoef (VU University); Vincent A.C. van den Berg (VU University) |
| Abstract: | This paper analyzes airlines' strategic interactions and airport efficient pricing, with a deterministic bottleneck model of congestion, in Cournot-Nash competition and in sequential competition where a Stackelberg leader interacts with perfectly competitive airlines. We show that the internalization of self-imposed congestion by non-atomistic carriers is consistent with earlier literature based on static models of congestion, but the congestion tolls are not. The tolls derived for fully atomistic airlines achieve the social optimum, when charged to all carriers, in the simultanous setting as well as in the sequential setting. We also find that alternative efficient pricing schemes exist for the sequential competition between a dominant airline and a competitive follower. The analysis suggests that airport congestion pricing has a more signicant role than what previous studies have suggested. Moreover, the financial deficit under optimal pricing may be less severe than what earlier studies suggest, as congestion toll revenues may cover optimal capacity investments. Political feasibility would be enhanced as ecient congestion charges do not depend on market shares and therefore may not be perceived as inequitable. |
| Keywords: | Airport pricing; Congestion; Bottleneck model |
| JEL: | H23 L50 L93 R48 |
| Date: | 2012–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120056&r=tre |
| By: | Dirk Heine; John Norregaard; Ian W.H. Parry |
| Abstract: | This paper recommends a system of upstream taxes on fossil fuels, combined with refunds for downstream emissions capture, to reduce carbon and local pollution emissions. Motor fuel taxes should also account for congestion and other externalities associated with vehicle use, at least until mileage-based taxes are widely introduced. An examination of existing energy/environmental tax systems in Germany, Sweden, Turkey, and Vietnam suggests that there is substantial scope for policy reform. This includes harmonizing taxes for pollution content across different fuels and end-users, better aligning tax rates with values for externalities, and scaling back taxes on vehicle ownership and electricity use that are redundant (on environmental grounds) in the presence of more targeted taxes. |
| Keywords: | Cross country analysis , Energy taxes , Environmental protection , Germany , Sweden , Tax reforms , Tax system reviews , Turkey , Vietnam , |
| Date: | 2012–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/180&r=tre |
| By: | Alfredo Pereira (Department of Economics, College of William and Mary, Williamsburg, VA, USA); Jorge Andraz (Faculdade de Economia, Universidade do Algarve e CEFAGE-UE) |
| Abstract: | This paper is an up-to-date survey of the literature on the effects of public investment on economic performance and therefore constitutes a comprehensive starting reference for academic researchers and policy makers alike. This is particularly important at a time when widespread recession and public budgetary concerns have brought to the forefront of the policy debate the economic and budgetary effects of public investment. This paper presents a comprehensive discussion of the empirical research on the impact of public investment in infrastructure on economic performance in terms of both the methodological approaches and respective conclusions. It includes an integrated discussion of the methodological developments that successively have led to the estimation of production functions, cost and profit functions and, more recently, vector autoregressive models. It considers applications to both the U.S. and other countries at the national, regional, and industry levels. Finally, it identifies some important areas for future research and highlights the natural convergence of this literature with the macro literature on the effects of fiscal policies. |
| Keywords: | public investment, infrastructure, economic performance, evidence for the US, regional evidence, industry-specific evidence, international evidence. |
| JEL: | C01 E62 H54 O57 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2012_10&r=tre |
| By: | Ianchovichina, Elena; Estache, Antonio; Foucart, Renaud; Garsous, Gregoire; Yepes, Tito |
| Abstract: | In the next 10 years or so, the infrastructure sector has the potential to generate significant employment. This paper estimates annual job creation of about 2.0 million in direct jobs and 2.5 million in direct, indirect and induced infrastructure-related jobs just by meeting the infrastructure investment needs of about 6.9 percent of gross domestic product (about US$106 billion) for the Middle East and North Africa region on average. The breakdown in expected needs is 11 percent in developing oil exporters, 6 percent in oil importing countries, and 5 percent in the Gulf Cooperation Council oil exporters. Needs are particularly high in electricity and roads. While important, infrastructure job creation will not resolve the region's unemployment problem alone and its job creation potential varies greatly across countries. Moreover, the current ability to finance and hence meet the infrastructure needs varies significantly across countries. Oil importers are likely to fall short under business as usual scenarios. In a region in which the public sector is the main source of infrastructure financing, fiscal choices will thus matter to job creation through infrastructure. But there are more challenges, including the governance of job creation, and the proper targeting and costing of subsidies for job creation and the (re)training programs needed. Managing expectations will also matter, as infrastructure jobs will help but will not solve the region's unemployment and underemployment problems. |
| Keywords: | Transport Economics Policy&Planning,Labor Markets,Banks&Banking Reform,Public Sector Economics,Labor Policies |
| Date: | 2012–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6164&r=tre |
| By: | Erik T. Verhoef (VU University Amsterdam) |
| Abstract: | The famous Mohring-Harwitz theorem states that, under certain technical conditions, the degree of self-financing of congested infrastructure is equal to the elasticity of the capacity cost function in the optimum, so that under neutral scale economies exact self-financing applies. Although the theorem has been proven to remain valid for various extensions of the basic set-up for which it was originally derived, it breaks down when the infrastructure is used by operators with market power when competing in Cournot fashion, the case in point often being oligopolistic airlines at a congested airport. This paper proposes a regulatory scheme, not involving lump-sum payments or budget constraints in the optimal pricing problem, that restores self-financing for congested infrastructure for this market form. What is more, under the proposed scheme, exact self-financing applies independent of the elasticity of the capacity cost function. The result remains true both for the case where operators treat the tolls parametrically, and for 'manipulable' tolls, designed to account for the fact that operators with market power can be expected to be aware of, and exploit, the fact that toll are not truly parametric, but instead depend on their own behaviour. |
| Keywords: | Congestion pricing; capacity choice; self-financing infrastructure; market power; airport congestion |
| JEL: | R41 R48 D62 |
| Date: | 2012–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20120064&r=tre |
| By: | Morse, George W. |
| Abstract: | Travel costs are unique when included in user fees because of Extension’s promise to provide equal access throughout the state. This Note explores this issue and several alternative ways to handle this. |
| Keywords: | Teaching/Communication/Extension/Profession, |
| Date: | 2012–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:ags:umapen:129298&r=tre |
| By: | Cecília Hornok (Central European University) |
| Abstract: | Timely deliveries have become more important in international trade in the recent decades, mostly because of the spread of international production fragmentation. This paper provides empirical evidence on the cost of time in trade by looking at how faster trade within the European Union (EU) contributed to the trade expansion with new EU members after the enlargement in 2004. I derive a bilateral trade cost index from trade data of EU countries in 19 manufacturing industries and years 2000–2006 and perform a double difference-in-differences estimation. The results show that the enlargement-induced decline in the trade cost index, and hence trade creation, was more than twice larger in industries, where production fragmentation is typically widespread. I proxy the improvement in timeliness by the decline in the waiting time at land border crossings and estimate that saving one hour at the border is like a 0.9% trade cost decline in ad valorem terms. Robustness checks, which account for the dominant transport mode or experiment with alternative measures of timeliness, confirm the main findings. |
| Keywords: | time cost of trade, double difference-in-differences, treatment intensity, EU enlargement |
| JEL: | F13 F14 F15 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mnb:wpaper:2012/4&r=tre |
| By: | Daft, Jost; Albers, Sascha |
| Abstract: | This paper develops a measurement framework that synthesizes the airline and strategy literature to identify relevant dimensions and elements of airline business models. The applicability of this framework for describing airline strategies and structures and, based on this conceptualization, for assessing the potential convergence of airline business models over time is then illustrated using a small sample of five German passenger airlines. For this sample, the perception of a rapprochement of business models can be supported. This paper extends the mostly qualitative and anecdotal literature on convergence in the airline industry and provides a platform for further empirical convergence studies. -- |
| Keywords: | airline strategy,convergence,business models |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ucdbpl:110&r=tre |
| By: | Boes, Stefan (University of Bern); Nüesch, Stephan (University of Zurich); Stillman, Steven (University of Otago) |
| Abstract: | We explore two unexpected changes in flight regulations to identify the causal effect of aircraft noise on health. Detailed yearly noise metrics are linked with panel data on health outcomes using exact address information. Controlling for individual and spatial heterogeneity, we find that aircraft noise significantly increases sleeping problems, weariness and headaches. Our pooled models substantially underestimate the detrimental health effects, which suggests that individuals self-select into residence based on their unobserved noise sensitivity and idiosyncratic vulnerability. Generally, we show that the combination of fixed effects and quasi-experiments is very powerful to identify causal effects in epidemiological field studies. |
| Keywords: | health, noise pollution, selection bias, fixed effects, quasi-experimental data |
| JEL: | I10 Q53 C23 |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6744&r=tre |