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Transport Economics


  • Richard Arnott

    () (Boston College)

  • Marvin Kraus

    () (Boston College)


This paper is concerned with the application of microeconomic theory to resource allocation in the transportation sector. The basic questions it addresses are how transportation should be priced and how capacity should be determined. Three models, the traditional highway pricing and investment model, the highway bottleneck model, and the traditional model of mass transit pricing and service, are employed to develop principles common to all transportation modes. This paper has been published as a chapter with the same title in Randolph W. Hall, ed., Handbook of Transportation Science, 2nd ed., Kluwer Academic Publishers, 2002.

Suggested Citation

  • Richard Arnott & Marvin Kraus, 2003. "Transport Economics," Boston College Working Papers in Economics 553, Boston College Department of Economics.
  • Handle: RePEc:boc:bocoec:553

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    References listed on IDEAS

    1. Benjamin Hermalin & Andrew K. Rose & Peter M. Garber & Andrew Crockett & David W. Mullins, Jr, 1999. "Risks to Lenders and Borrowers in International Capital Markets," NBER Chapters,in: International Capital Flows, pages 363-420 National Bureau of Economic Research, Inc.
    2. Baxter, Marianne & Crucini, Mario J, 1995. "Business Cycles and the Asset Structure of Foreign Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(4), pages 821-854, November.
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    4. Peek, Joe & Rosengren, Eric S, 1997. "The International Transmission of Financial Shocks: The Case of Japan," American Economic Review, American Economic Association, vol. 87(4), pages 495-505, September.
    5. Patrick J. Kehoe & Fabrizio Perri, 2002. "International Business Cycles with Endogenous Incomplete Markets," Econometrica, Econometric Society, vol. 70(3), pages 907-928, May.
    6. Heathcote, Jonathan & Perri, Fabrizio, 2002. "Financial autarky and international business cycles," Journal of Monetary Economics, Elsevier, vol. 49(3), pages 601-627, April.
    7. B. Gerard Dages & Linda S. Goldberg & Daniel Kinney, 2000. "Foreign and domestic bank participation in emerging markets: lessons from Mexico and Argentina," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 17-36.
    8. Valerie A. Ramey & Matthew D. Shapiro, 2001. "Displaced Capital: A Study of Aerospace Plant Closings," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 958-992, October.
    9. Simon Gilchrist & Jean-Olivier Hairault & Hubert Kempf, 2002. "Monetary policy and the financial accelerator in a monetary union," International Finance Discussion Papers 750, Board of Governors of the Federal Reserve System (U.S.).
    10. Eric S. Rosengren & Joe Peek, 2000. "Collateral Damage: Effects of the Japanese Bank Crisis on Real Activity in the United States," American Economic Review, American Economic Association, vol. 90(1), pages 30-45, March.
    11. Raghuram G. Rajan & Luigi Zingales, 1998. "Which Capitalism? Lessons Form The East Asian Crisis," Journal of Applied Corporate Finance, Morgan Stanley, vol. 11(3), pages 40-48.
    12. Jonathan Eaton & Mark Gersovitz, 1981. "Debt with Potential Repudiation: Theoretical and Empirical Analysis," Review of Economic Studies, Oxford University Press, vol. 48(2), pages 289-309.
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    Cited by:

    1. Traub, Stefan & Missong, Martin, 2005. "On the public provision of the performing arts," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 862-882, November.
    2. Richard Arnott, 1997. "Congestion Tolling and Urban Spatial Structure," Boston College Working Papers in Economics 389., Boston College Department of Economics.
    3. Lindsey, Robin, 2012. "Road pricing and investment," Economics of Transportation, Elsevier, vol. 1(1), pages 49-63.
    4. Viard, V. Brian & Fu, Shihe, 2015. "The effect of Beijing's driving restrictions on pollution and economic activity," Journal of Public Economics, Elsevier, vol. 125(C), pages 98-115.
    5. Engel Eduardo M & Fischer Ronald & Galetovic Alexander, 2004. "Toll Competition Among Congested Roads," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-21, March.
    6. Ian W. H. Parry & Margaret Walls & Winston Harrington, 2007. "Automobile Externalities and Policies," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 373-399, June.
    7. Fu, Shihe & Gu, Yizhen, 2017. "Highway toll and air pollution: Evidence from Chinese cities," Journal of Environmental Economics and Management, Elsevier, vol. 83(C), pages 32-49.
    8. Yossi Berechman & Bekir Bartin & Ozlem Yanmaz-Tuzel & Kaan Ozbay, 2011. "The Full Marginal Costs of Highway Travel: Methods and Empirical Estimation for North America," Chapters,in: A Handbook of Transport Economics, chapter 19 Edward Elgar Publishing.
    9. Timilsina, Govinda R. & Dulal, Hari B., 2008. "Fiscal policy instruments for reducing congestion and atmospheric emissions in the transport sector : a review," Policy Research Working Paper Series 4652, The World Bank.
    10. Romeo Danielis & Edoardo Marcucci, 1999. "Bottleneck Congestion and Modal Split Revisited," Working Papers 1999.5, Fondazione Eni Enrico Mattei.

    More about this item


    Transport economics; Urban transportation; Congestion pricing;

    JEL classification:

    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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