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Passenger flows in CGE models for transport project evaluation

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  • Bröcker, Johannes

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    Abstract

    Recently computable general equilibrium methods are becoming more and more popular for estimating welfare effects of transport projects, when a differentiation by region or social group is required. This paper focuses on the spatial distributional dimension. Most spatial CGE applications, however, have up to now only taken the impact of goods transport costs into consideration. To a large extent, however, welfare effects are due to time and cost savings in passenger transport. This paper extends the CGE approach by including private passenger transport. It aims at a model design deriving passenger flows from individual optimising behaviour; it uses parsimonious functional forms such that it is possible to calibrate the model using benchmark data on O-D passenger flows and willingness to pay estimates for time savings. The latter will be borrowed from the literature. The paper will present different specifications: with and without an explicit time constraint; continuous and discrete decisions on the level of the individual. Equivalent variation measures for quantifying welfare impacts in monetary terms will be derived.

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    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa02/cd-rom/papers/163.pdf
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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p163.

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    Date of creation: Aug 2002
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    Handle: RePEc:wiw:wiwrsa:ersa02p163

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    1. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, Elsevier, vol. 23(2), pages 177-200, March.
    2. Bröcker, Johannes, 1998. "Spatial effects of transeuropean networks: Preliminary results from a spatial computable general equilibrium analysis," Discussion Papers, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics 4/98, Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics.
    3. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, American Economic Association, vol. 67(3), pages 297-308, June.
    4. Johannes Brocker & d’Artis Kancs, 2001. "Methodology for the Assessment of Spatial Economic Impacts of Transport Projects and Policies," EERI Research Paper Series, Economics and Econometrics Research Institute (EERI), Brussels EERI_RP_2001_03, Economics and Econometrics Research Institute (EERI), Brussels.
    5. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 33(2), pages 701-729, June.
    6. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, American Economic Association, vol. 72(3), pages 389-405, June.
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