nep-tre New Economics Papers
on Transport Economics
Issue of 2013‒04‒13
twenty-one papers chosen by
Erik Teodoor Verhoef
VU University Amsterdam

  1. The Productivity Impact of Infrastructure in Turkey, 1987 - 2006 By J.W. Fedderke and T.E. Kaya
  2. Does Supporting Passenger Railways Reduce Road Traffic Externalities? By Lalive, Rafael; Luechinger, Simon; Schmutzler, Armin
  3. When Do Slower Roads Provide Faster Travel? By Small, Kenneth A.; Ng, Chen Feng
  4. Comparing the Determinants of Mode Choice across Travel Purposes By Driscoll, Áine; Lyons, Sean; Morgenroth, Edgar; Nolan, Anne
  5. The User Costs of Air Travel Delay Variability By Paul Koster; Eric Pels; Erik Verhoef
  6. Peering Inside the Pork Barrel By Sciara, Gian-Glaudia
  7. Aviation liberalization as a means to promote international tourism: The EU–Morocco case By Frédéric Dobruszkes; Véronique Mondou
  8. From Mine to Coast: Transport Infrastructure and the Direction of Trade in Developing Countries By Roberto Bonfatti; Steven Poelhekke
  9. Roads and Trade: Evidence from the US By Duranton, Gilles; Morrow, Peter; Turner, Matthew A
  10. Intercontinental airport competition By Wim BENOOT; Jan BRUECKNER; Stefan PROOST
  11. New Automobile Regulations: Double the Fuel Economy, Half the CO2 Emissions, and Even Automakers Like It By Lutsey, Nic
  12. The engine immobilizer: a non-starter for car thieves By van Ours, Jan C; Vollaard, Ben
  13. Political economy aspects of fuel subsidies : a conceptual framework By Strand, Jon
  14. The efect on firms' Productivity of accessibility. The Spanish manufacturung sector By David, Martín-Barroso; Juan Andres, Nuñez; Francisco J., Velazquez
  15. Demand Uncertainty and Capacity Utilization in Airlines By Escobari, Diego; Lee, Jim
  16. Cost Efficiency and Subsidization in German Local Public Bus Transit By Nieswand, Maria; Walter, Matthias
  17. Two-Way Street Networks: More Efficient than Previously Thought? By Gayah, Vikash V.
  18. Will China's Vehicle Population Grow Even Faster than Forecasted? By Wang, Yunshi; Teter, Jacob; Sperling, Daniel
  19. The Access Almanac: Planning for High Speed Rail By Wachs, Martin
  20. The effects of public spending composition on firm productivity By Kneller, Richard; Misch, Florian
  21. Solving Concave Network Flow Problems By Marta S.R. Monteiro; Dalila B.M.M. Fontes; Fernando A.C.C. Fontes

  1. By: J.W. Fedderke and T.E. Kaya
    Abstract: This paper explores the impact of some key infrastructure measures in transportation, telecommunication and electricity production sectors on labor productivity, using data on two-digit sectors for the Turkish economy for the years 1987 to 2006. We find both statistical and economic significance of infrastructure on productivity growth, for road, port and air transport, telecommunications and electricity production. In the railway sector, only measures of actual freight carried are consistently statistically significanctly associated with productivity growth, while other measures of infrastructure are insignificantly or perversely associated with productivity growth. Given that the railway transport sector is the only infrastructure sector that remains closed to competition and private participation, this raises the issue of the significance of private sector involvement in infrastructure provision.
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:333&r=tre
  2. By: Lalive, Rafael; Luechinger, Simon; Schmutzler, Armin
    Abstract: Many governments subsidize regional rail service as an alternative to road traffic. This paper assesses whether increases in service frequency reduce road traffic externalities. We exploit differences in service frequency growth by procurement mode following a railway reform in Germany to address endogeneity of service growth. Increases in service frequency reduce the number of severe road traffic accidents, carbon monoxide, nitrogen monoxide, nitrogen dioxide pollution and infant mortality. Placebo regressions with sulfur dioxide and ozone yield no effect. Service frequency growth between 1994 and 2004 improves environmental quality by an amount that is worth approximately 28-40 % of total subsidies. An analysis of household behavior shows that the effects of railway services on outcome variables are driven by substitution from road to rail.
    Keywords: Pollution; Public Transport; Railways; Road Accidents
    JEL: Q53 R41 R48
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9335&r=tre
  3. By: Small, Kenneth A.; Ng, Chen Feng
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, slower roads, faster travel, traffic congestion
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt3xm6v0gm&r=tre
  4. By: Driscoll, Áine; Lyons, Sean; Morgenroth, Edgar; Nolan, Anne
    Abstract: This paper considers travel mode choice for a range of journey purposes in Ireland using micro-data for 2009. Results suggest that demographic and socio-economic variables, location and public transport availability are important determinants of mode choice. The results also indicate an attachment to the car as a mode of transport for non-commuting journeys when available, and especially when used regularly for work journeys. Importantly, the determinants of mode choice are found to differ across journey purposes suggesting that it is not valid to generalise the results from studies considering only one journey purpose.
    Keywords: Mode choice; travel purpose; model comparison
    JEL: C25 D12 R22 R41
    Date: 2013–04
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:46034&r=tre
  5. By: Paul Koster (VU University Amsterdam); Eric Pels (VU University Amsterdam); Erik Verhoef (VU University Amsterdam)
    Abstract: We derive the expected user costs of US domestic air travel delay variability taking into account scheduling behavior of travelers. Travelers do not only consider mean arrival delays, but also face scheduling costs because they arrive too early or too late at their destination. The model allows travelers to anticipate arrival delay variability by choosing an earlier flight. We show that the expected user costs of US air traffic delays are underestimated by 16% if arrival delay variability is ignored.
    Keywords: air traffic delay; travel time variability; scheduling; value of reliability
    JEL: R4
    Date: 2013–04–09
    URL: http://d.repec.org/n?u=RePEc:dgr:uvatin:20130056&r=tre
  6. By: Sciara, Gian-Glaudia
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, us congress, funding, transport projects
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt06z9w6tt&r=tre
  7. By: Frédéric Dobruszkes; Véronique Mondou
    Abstract: This paper analyzes the extent to which the liberalization of the airline market between the EU and Morocco has led to significant changes in both air services and leisure travel, thus contributing to the Moroccan tourist master plan to attract 10 million tourists. Liberalization has led to a large expansion of regular air services in terms of the number of seats and routes supplied but also to a decrease in charter business. The low-cost airlines are the main players in this move. International leisure mobility to Morocco has also strongly increased, although the relation with air transport liberalization is less clear. This increase involves both Moroccans living abroad and foreign tourists. Air transport has grown its market share despite the significant decrease in the number of tour operator packages sold. The increase is particularly large among Moroccan citizens living abroad, suggesting new habits with regard to long-distance mobility.
    Keywords: Air transport liberalization; Air travel; Low-cost airlines; Charter airlines; Leisure travel; Visits to friends and relatives; Morocco
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/142613&r=tre
  8. By: Roberto Bonfatti (University of Nottingham); Steven Poelhekke (VU University Amsterdam, and De Nederlandsche Bank)
    Abstract: Mine-related transport infrastructure specializes in connecting mines to the coast, and not so much to neighboring countries. This is most clearly seen in developing countries, whose transport infrastructure was originally designed to facilitate the export of natural resources in colonial times. We provide first econometric evidence that mine-to-coast transport infrastructure matters for the pattern of trade of developing countries, and can help explaining their low level of regional integration. The main idea is that, to the extent that it can be used not just to export natural resources but also to trade other commodities, this infrastructure may bias a country's structure of transport costs in favor of overseas trade, and to the detriment of regional trade. We investigate this potential bias in the context of a gravity model of trade. Our main findings are that coastal countries with more mines import less than average from their neighbors, and this effect is s tronger when the mines are located in such a way that the related infrastructure has a stronger potential to affect trade costs. Consistently with the idea that this effect is due to mine-to-coast infrastructure, landlocked countries with more mines import less than average from their non-transit neighbors, but more then average from their transit neighbors. Furthermore, this effect is specific to mines and not to oil and gas fields, arguably because pipelines cannot possibly be used to trade other commodities. We discuss the potential welfare implications of our results, and relate these to the debate on the economic legacy of colonialism for developing countries.
    Keywords: Mineral Resources; Transport Infrastructure; Regional Trade Integration; Gravity Model; Economic Legacy of Colonialism
    JEL: F14 F54 Q32 R4
    Date: 2013–03–07
    URL: http://d.repec.org/n?u=RePEc:dgr:uvatin:20130042&r=tre
  9. By: Duranton, Gilles; Morrow, Peter; Turner, Matthew A
    Abstract: We estimate the effect of interstate highways on the level and composition of trade for us cities. Highways within cities have a large effect on the weight of city exports with an elasticity of approximately 0.5. We find little effect of highways on the total value of exports. Consistent with this, we find that cities with more highways specialize in sectors producing heavy goods.
    Keywords: interstate highways; trade and specialisation; transport costs
    JEL: F14 R41 R49
    Date: 2013–03
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9393&r=tre
  10. By: Wim BENOOT; Jan BRUECKNER; Stefan PROOST
    Abstract: This paper analyzes strategic interaction between intercontinental airports, each of which levies airport charges paid by airlines and chooses its own capacity under conditions of congestion. Congestion from intercontinental flights is common across the airports since departure and arrival airports are linked one to one, while purely domestic traffic also uses each airport. The paper focuses on five questions. First, if both continents can strategically set separate airport charges for domestic and intercontinental flights, how will the outcome differ from the first-best solution? Second, how is the impact of strategic airport behavior affected by the extent of market power of the airlines serving the intercontinental market? Third, what happens if one continent has several competing intercontinental airports, each with its own regulator, while the other has a single airport and regulator? Fourth, how effective is a non-discrimination clause for airport charges, which prevents independent strategic use of the intercontinental charge? Fifth, what is the effect of higher airport operating costs on one continent (a result of security or immigration procedures) on the strategic outcome? The questions are addressed with an algebraic model and results are illustrated numerically.
    Date: 2012–03
    URL: http://d.repec.org/n?u=RePEc:ete:ceswps:ces12.03&r=tre
  11. By: Lutsey, Nic
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, fuel economy, co2 emissions, automobile, automakers
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt8qv9t5r0&r=tre
  12. By: van Ours, Jan C; Vollaard, Ben
    Abstract: We provide evidence for a beneficial welfare impact of a crime policy that is targeted at strenghtening victim precaution. Regulation made application of the electronic engine immobilizer, a simple and low-cost anti-theft device, mandatory for all new cars sold within the European Union as of 1998. We exploit the regulation as source of exogenous variation in use of the device by year of manufacture of cars. Based on detailed data at the level of car models, we find that uniform application of the security device reduced the probability of car theft by an estimated 50 percent on average in the Netherlands during 1995-2008, accounting for both the protective effect on cars with the device and the displacement effect on cars without the device. The costs per prevented theft equal some 1,500 Euro; a fraction of the social benefits of a prevented car theft.
    Keywords: car theft; crime; government regulation; victim precaution
    JEL: H11 H23 K42
    Date: 2013–01
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9298&r=tre
  13. By: Strand, Jon
    Abstract: While notoriously inefficient, fuel subsidies are widespread, and in many cases politically stable. This paper discusses and models various political economy aspects of fuel subsidies, focusing on gasoline and kerosene. Both economic and political are considered to explain differences in subsidies, with particular focus on democratic and autocratic governments. A political process is modeled whereby a promise of low fuel prices is used in democracies to attract voters, and in autocracies to mobilize support among key groups. Subsidies to fuels are viewed as either easier to observe, easier to commit to, easier to deliver, or better targeted at core groups, than other public goods or favors offered by rulers. Easier commitment and delivery than for regular public goods can explain the high prevalence of such policies in autocracies, and also in young democracies where the capacity to commit to or deliver complex public goods is not yet fully developed. The analysis provides a framework for empirical testing and verification.
    Keywords: Transport Economics Policy&Planning,Economic Theory&Research,Energy Production and Transportation,Transport and Environment,Public Sector Economics
    Date: 2013–03–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6392&r=tre
  14. By: David, Martín-Barroso; Juan Andres, Nuñez; Francisco J., Velazquez
    Abstract: This paper evaluates the impact of accessibility on the productivity of Spanish manufacturing firms. We suggest the use of accessibility indicators to workers and commodities, integrating transport, land use, and individual components in their measurement, and computing real distances or travelling times using the Spanish full road network. The estimation is carried out in two steps. In the first one we estimate almost a hundred production functions using a panel of 155,937 firms along the 1999-2009 period from SABI database, applying Levinsohn and Petrin technique. From these estimations we derive the Total Factor Productivity function for year 2009, which is then explained in the second estimation step as a function of the accessibility indicators and additional control variables. Results evidence the crucial role of the accessibility to commodities, and a lesser but significant effect of workers’ accessibility on firms’ productivity.
    Keywords: Accessibility, Firm Productivity, Transport Infrastructures.
    JEL: D24 R12 R40
    Date: 2013–04–04
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:45842&r=tre
  15. By: Escobari, Diego; Lee, Jim
    Abstract: This paper studies the relationship between demand uncertainty—the key source of excess capacity—and capacity utilization in the U.S. airline industry. We present a simple theoretical model that predicts that lower demand realizations are associated with higher demand volatility. This prediction is strongly supported by the results of estimating a panel GARCH framework that pools unique data on capacity utilization across different flights and over various departure dates. A one unit increase in the standard deviation of unexpected demand decreases capacity utilization by 21 percentage points. The estimation controls for unobserved time-invariant specific characteristics as well as for systematic demand fluctuations.
    Keywords: Demand uncertainty; capacity utilization; airlines; panel GARCH; GARCH-in-mean
    JEL: C33 L93
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:46059&r=tre
  16. By: Nieswand, Maria; Walter, Matthias
    Abstract: This paper examines the impact of endogenous deficit-balancing subsidies on the cost efficiency of local public bus companies by using alternative frontier cost models for panel data. Thereby, the multidimensional performance estimation incorporates the subsidy variable directly. The empirical analysis relies on a unique dataset of 33 German companies observed over a period of up to twelve years. We find a positive effect of endogenous subsidies on the standard deviation of cost inefficiency implying that the range of companies’ cost inefficiency increases with the level of subsidies relative to total costs. Further, we find that non-subsidized firms perform better.
    Keywords: cost efficiency; endogenous subsidies; heteroscedasticity; local public bus transportation; panel data; stochastic cost frontier
    JEL: C13 D24 L92
    Date: 2013–02
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9346&r=tre
  17. By: Gayah, Vikash V.
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, two-way streets, one-way streets, downtown, urban planners
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt6sx0q4kg&r=tre
  18. By: Wang, Yunshi; Teter, Jacob; Sperling, Daniel
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, China, Vehicle Population, vehicle market
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt1ct459b7&r=tre
  19. By: Wachs, Martin
    Keywords: Engineering, Natural Resources and Conservation, Social Sciences, high speed rail, california, fast trains
    Date: 2012–10–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt5535d27m&r=tre
  20. By: Kneller, Richard; Misch, Florian
    Abstract: This paper exploits the unique institutional features of South Africa to estimate the impact of provincial public spending on health, education and transport on firm productivity. Our identification strategy is based on within industry-province differences between firms of the effects of public spending. We show that public spending composition affects firm productivity depending on the capital intensity of firms relative to the province-industry mean. Our data and empirical specification allow us to rule out that these results are affected by econometric problems that are commonly encountered when estimating the effects of fiscal policy and by unobserved industry- or province-specific productivity shocks. In contrast to related existing microeconomic evidence, we take into account the government budget constraint so that our results have clear policy implications. --
    Keywords: Public Spending Composition,Productive Public Spending,Firm Productivity
    JEL: D24 H32 H72 O12
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13014&r=tre
  21. By: Marta S.R. Monteiro (Faculdade de Economia da Universidade do Porto); Dalila B.M.M. Fontes (Faculdade de Economia da Universidade do Porto); Fernando A.C.C. Fontes (Faculdade de Engenharia da Universidade do Porto)
    Abstract: The Minimum Cost Network Flow Problem (MCNFP) includes a wide range of combinatorial optimization problems. Many applications exist for MCNFPs for instance supply chains, logistics, production planning, communications and transportations. Concave costs are, in many applications, more realistic than linear ones because of the association of prices with economies of scale. When concave costs are introduced in MCNFPs, then the difficulty to solve them increases and they become NP-Hard. Solution methods developed for these problems comprise both exact and approximate algorithms, the latter ones usually of a heuristic type. What we propose to do in this work is to present an overview of the past and most recent literature published on the subject.
    Keywords: Minimum Cost Network Flow Problems, Survey, Heuristics, Exact Methods
    JEL: C61 C44
    Date: 2012–12
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:475&r=tre

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