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Statistical distribution of time values and underestimation of the benefits of speed

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  • Abraham, Claude
  • Bonnafous, Alain
  • Ray, Jean-Baptiste

Abstract

•Users' time savings are important in calculating net present value of a transport project.•The monetary estimates of time savings depend on the value of the time used.•The official methods of calculation most often use average values.•Using the statistical distribution of the values of time substantially modifies the result.•The higher the cost of transportation, the greater the underestimation of user surpluses.

Suggested Citation

  • Abraham, Claude & Bonnafous, Alain & Ray, Jean-Baptiste, 2021. "Statistical distribution of time values and underestimation of the benefits of speed," Transport Policy, Elsevier, vol. 113(C), pages 27-36.
    • Handle: RePEc:eee:trapol:v:113:y:2021:i:c:p:27-36
    DOI: 10.1016/j.tranpol.2020.08.020
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    References listed on IDEAS

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    1. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-130, January.
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    3. Bonnafous, Alain, 2015. "The economic regulation of French highways: Just how private did they become?," Transport Policy, Elsevier, vol. 41(C), pages 33-41.
    4. Patrick Bonnel, 2004. "Prévoir la demande de transport," Post-Print halshs-00077292, HAL.
    5. de Jong, Gerard & Daly, Andrew & Pieters, Marits & van der Hoorn, Toon, 2007. "The logsum as an evaluation measure: Review of the literature and new results," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 874-889, November.
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