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Do Transportation and Communications Tend to Be Substitutes, Complements, or Neither? U.S. Consumer Expenditures Perspective, 1984-2002

Listed author(s):
  • Choo, Sangho
  • Lee, Taihyeong
  • Mokhtarian, Patricia L

With aggregate data from the U.S. Consumer Expenditure Survey for 19 years, 1984 through 2002, this study analyzes relationships between expenditures on transportation and communications. Several classification schemes for expenditure categories were used, from the most aggregate [two categories (transportation and communications)] to the most disaggregate [nine transportation categories (new vehicle purchases, used vehicle purchases, vehicle finance charges, gasoline and motor oil, vehicle maintenance and repairs, vehicle insurance, public transportation, out-of-town lodging, and other entertainment including bikes and recreational vehicles) and five communications categories (telephone service; miscellaneous household equipment including phones and computers; television, radio, and sound equipment; postage and stationery; and reading)]. Aggregate demand system modeling (in particular, the linear approximate almost ideal demand system) was then used to determine the relationships between expenditures on transportation and those on communications, again for several different classifications. The model results indicate that transportation and communications categories have substitution and complementarity relationships, often not symmetric. However, a dominant effect of complementarity can be found in the influence of communications on transportation.

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Paper provided by Institute of Transportation Studies, UC Davis in its series Institute of Transportation Studies, Working Paper Series with number qt6zm6x7hm.

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Date of creation: 01 Jan 2008
Handle: RePEc:cdl:itsdav:qt6zm6x7hm
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  1. Lee, Taihyeong & Mokhtarian, Patricia L., 2004. "An Input-Output Analysis of the Relationships Between Communications and Travel for Industry," University of California Transportation Center, Working Papers qt55x4h2r2, University of California Transportation Center.
  2. Choo, Sangho & Mokhtarian, Patricia L., 2007. "Telecommunications and travel demand and supply: Aggregate structural equation models for the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(1), pages 4-18, January.
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