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on Transport Economics |
| By: | Rajiv Sharma |
| Abstract: | It is widely held that large institutional investors such as pension funds and sovereign wealth funds with long term liabilities and a low risk appetite are ideally suited to invest in transportation infrastructure assets. Despite the theoretical ideal match between a large source of capital and an asset class in need of investment, the uptake of institutional investors has been slow. This has been due to bad experiences with early investments and the uncertainty associated with investing in some transportation infrastructure assets... |
| Date: | 2013–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaab:2013/14-en&r=tre |
| By: | Qingyuan Du; Shang-Jin Wei; Peichu Xie |
| Abstract: | This paper studies the effect of transport infrastructure on the real exchange rate (RER) and reaches two relatively strong conclusions. First, while the list of robust determinants of the RER is not long, transport infrastructure belongs to that list. Many other potential determinants proposed in the literature, such as net foreign asset position or terms of trade, turn out to be not robust. Second, in terms of economic significance, the infrastructure effect follows closely the well-known Balassa-Samuelson effect and is one of the most important explanatory variables for RER movements, especially in developing countries. |
| JEL: | F3 F31 F41 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19291&r=tre |
| By: | Fadaei Oshyani, Masoud (KTH); Sundberg, Marcus (KTH); Karlström, Anders (KTH) |
| Abstract: | GPS and nomad devices are increasingly used to provide data from individuals in urban traffic networks. In many different applications, it is important to predict the continuation of an observed path, and also, given sparse data, predict where the individual (or vehicle) has been. Estimating the perceived cost functions is a difficult statistical estimation problem, for different reasons. First, the choice set is typically very large. Second, it may be important to take into account the correlation between the (generalized) costs of different routes, and thus allow for realistic substitution patterns. Third, due to technical or privacy considerations, the data may be temporally and spatially sparse, with only partially observed paths. Finally, the position of vehicles may have measurement errors. We address all these problems using a indirect inference approach. We demonstrate the feasibility of the proposed estimator in a model with random link costs, allowing for a natural correlation structure across paths, where the full choice set is considered. |
| Keywords: | GPS; Route choice model; Indirect inference; Sparse data; Statistical estimation problem. |
| JEL: | R40 |
| Date: | 2013–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2013_011&r=tre |
| By: | Bruno DE BORGER; Stefan PROOST |
| Abstract: | This paper studies the political economy of pricing and investment for excludable and congestible public goods in a federal state. Currently, we observe a wide variety of practices, ranging from federal gasoline taxes and road investment to the local supply of -- and sometimes free access to -- libraries, parking spaces and public swimming pools. The two-region model we develop allows for spill-overs between regions, it takes into account congestion, and it captures both heterogeneity between and within regions. Regional decisions are taken by majority voting; decisions at the federal level are taken either according to the principle of a minimum winning coalition or through cooperative bargaining. We have the following results. First, when users form the majority in at least one region, decentralized decision making performs certainly better than centralized decision making if spill-overs are not too large. Centralized decisions may yield higher welfare than decentralization only if users have a large majority and the infrastructure in a given region is intensively used by both local and outside users. Second, if non-users form a majority in both regions, centralized and decentralized decision making yield the same socially undesirable outcome, with prices that are much too high. Third, both bargaining and imposing uniform price restrictions across regions improve the performance of centralized decisions. Fourth, the performance of decentralized supply is strongly enhanced by local self-financing rules; it prevents potential exploitation of users within regions. Self-financing rules at the central level are not necessarily welfare-improving. Finally, the results of this paper contribute to a better understanding of actual policy-making. |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces13.16&r=tre |
| By: | Jorge Valido; M. Pilar Socorro; Francesca Medda |
| Abstract: | We consider a market with a full-service (FS) carrier (the incumbent) and a low-cost (LC) carrier (the potential entrant). If the LC carrier enters the market, airlines compete in ticket prices and frequency with vertically differentiated products. The higher the frequency, the lower passenger’s generalized price. Thus, more frequency allows airlines to increase ticket prices without losing demand. In this context, we show that the incumbent may increase the frequency offered in order to deter the LC carrier entry. We show that if the airport capacity is low enough the LC carrier entry can be easily blocked or deterred. However, if the airport capacity is sufficiently high, the LC carrier entry must be accommodated. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2013-05&r=tre |
| By: | Fosgerau, Mogens (DTU TRANSPORT); Frejinger, Emma (KTH); Karlström, Anders (KTH) |
| Abstract: | This paper considers the path choice problem, formulating and discussing an econometric random utility model for the choice of path in a network with no restriction on the choice set. Starting from a dynamic specification of link choices we show that it is equivalent to a static model of the multinomial logit form but with infinitely many alternatives. The model can be consistently estimated and used for prediction in a computationally efficient way. Similarly to the path size logit model, we propose an attribute called link size that corrects utilities of overlapping paths but that is link additive. The model is applied to data recording path choices in a network with more than 3,000 nodes and 7,000 links. |
| Keywords: | Discrete choice; Recursive logit; Networks; Route choice; Infinite choice set |
| JEL: | R40 |
| Date: | 2013–09–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2013_010&r=tre |
| By: | Entorf, Horst |
| Abstract: | Safety is costly, but lack of safety can be even more expensive. This contribution considers the various dimensions of “Economics of Safety”, ranging from safety at work to road safety, terrorism and crime. Economic science helps to understand the role of safety as a (public or private) good which is supplied and demanded under technological and budgetary constraints as well as individual incentives. However, realized equilibrium levels of safety might be affected by market failure, for instance due to moral hazard problems. The paper highlights the need for regulated safety markets and minimum standards. The level of safety in a society depends on the opportunity costs of non-realized safety levels. For instance, when societal costs of crime are considered exuberant, public pressure will be high and more police would be hired. Thus, measuring costs of lacking safety and willingness-to-pay for security measures are crucial for practical policy and empirical aspects of the economics of safety. This paper presents common approaches found in the literature which distinguish between direct and indirect costs as well as between tangible and intangible costs. An illustrative example is taken from the calculation of societal costs of fatal traffic accidents which is contrasted by the way such costs measures are considered in the health sector and the economics of crime. Approaches are similar but differ in the evaluation of pain, harm and mental illness. Future policy advice would benefit from standardisation of intangible cost measures. |
| Keywords: | Public Goods, safety economics, economic costs of accidents, intangible costs, safety market |
| JEL: | H41 I3 I30 K4 |
| Date: | 2013–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49692&r=tre |
| By: | Olaf Merk |
| Abstract: | This report provides a synthesis of main findings from the OECD Port-Cities Programme, created in 2010 in order to assess the impact of ports on their cities and provide policy recommendations to increase the positive impacts of ports on their cities. |
| Date: | 2013–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/13-en&r=tre |
| By: | Cabral, Luís M B; Wang, Zhu; Xu, Yi (Daniel) |
| Abstract: | Taking the early U.S. automobile industry as an example, we evaluate four competing hypotheses on regional industry agglomeration: intra-industry local externalities, inter-industry local externalities, employee spinouts, and location fixed-effects. Our findings suggest that inter-industry spillovers, particularly the development of the carriage and wagon industry, play an important role. Spinouts play a secondary role and only contribute to agglomeration at later stages of industry evolution. The presence of other firms in the same industry has a negligible (or maybe even negative) effect on agglomeration. Finally, location fixed-effects account for some agglomeration, though to a lesser extent than inter-industry spillovers and spinouts. |
| Keywords: | Employee spinouts; Industry agglomeration; Local externalities |
| JEL: | J6 L0 R1 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9435&r=tre |
| By: | Chris Kimble (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School, Euromed Marseille - École de management - Association Euromed Management - Marseille); Hua Wang (Euromed Marseille - École de management - Association Euromed Management - Marseille) |
| Abstract: | Purpose The overarching theme is the importance of innovations that are created within the emerging economies. More specifically, the article looks at the development of various alternatives to vehicles powered by the internal combustion engine, new energy vehicles (NEVs) within China. Design/methodology/approach The broad strategic approach of two sectors within the NEV sector in China, the pure electric vehicle (EV) and the low-speed electric vehicle (LSEV) sectors, are compared using recent data and conclusions are drawn. Findings The EV sector is viewed by the central government as a key sector for China's future industrial growth and is heavily supported. In contrast, the LSEV sector receives no support from central government and yet clearly outstrips the sales of EVs. The article argues that the latter's success is a reflection of the LSEV sector's focus on business model rather than technological innovation. Practical implications The article highlights the importance of monitoring innovations that come from within emerging economies and also illustrates the benefits that can come from commercially focused innovations rather than those based on technology. Social implications Finding alternatives to vehicles powered by fossil fuels is one of the most important challenges facing the world today. This article looks at the search for one alternative and examines its implications. What is original/of value? The article examines a business sector that is peculiarly Chinese and yet has potential implications far beyond China. It also contains recent sales figures and other data collected directly from sources in China. |
| Keywords: | Business models; China; Electric vehicles; Emergent strategy; Emerging economies; Innovation; Innovation; New energy vehicles |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00859484&r=tre |