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Transport Demand and Spatial Equilibria

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  • Mike Smart

Abstract

Characteristics of transport demand are inferred from spatial equilibrium with exogenous locations. For non-trivial spatial distributions of firms and markets I derive computable expressions for elasticity of transport demand, producer surplus, and consumer surplus as a function of the mass-distance price of transport. Producer surplus is likely to have one or more local maxima, suggesting a disincentive for producers to minimise transport costs. Numerical simulation is used to illustrate results. A method is suggested for computing simultaneous transport and commodity market equilibria for spatially dispersed markets. © 2008 LSE and the University of Bath

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  • Mike Smart, 2008. "Transport Demand and Spatial Equilibria," Journal of Transport Economics and Policy, University of Bath, vol. 42(2), pages 323-348, May.
    • Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:2:p:323-348
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    Cited by:

    1. Raballand, Gael & Macchi, Patricia & Merotto, Dino & Petracco, Carly, 2009. "Revising the roads investment strategy in rural areas : an application for Uganda," Policy Research Working Paper Series 5036, The World Bank.
    2. World Bank, 2010. "Uganda - Public Expenditure Review : Strengthening the Impact of the Roads Budget," World Bank Publications - Reports 2941, The World Bank Group.

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