IDEAS home Printed from https://ideas.repec.org/p/nex/wpaper/inducedsupply.html
   My bibliography  Save this paper

Induced Supply: A Model of Highway Network Expansion at the Microscopic Level

Author

Listed:
  • David Levinson

    () (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

  • Ramachandra Karamalaputi

Abstract

This paper examines the growth of a network based on the present conditions of the network, traffic demand, other demographic characteristics, project costs, and a budget constraint. The effects of expanding a link on its upstream and downstream neighbors, as well as on parallel links are also considered. Data spans two decades and consists of data on physical attributes of the network, their expansion history and AADT values on each of the links. A non-linear cost model is developed for the Twin Cities Metropolitan Area. Results show that high capacity links are more likely to be expanded and a higher budget result in more links being expanded. Large population in the surrounding region deters two-lane expansion because of the high cost associated with such an expansion but a one-lane expansion is favored. One of the important results of this research is that the rate of network expansion has decreased over the years.

Suggested Citation

  • David Levinson & Ramachandra Karamalaputi, 2003. "Induced Supply: A Model of Highway Network Expansion at the Microscopic Level," Working Papers 200304, University of Minnesota: Nexus Research Group.
  • Handle: RePEc:nex:wpaper:inducedsupply
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/11299/179908
    File Function: First version, 2007
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bhat, Chandra R., 2001. "Quasi-random maximum simulated likelihood estimation of the mixed multinomial logit model," Transportation Research Part B: Methodological, Elsevier, vol. 35(7), pages 677-693, August.
    2. Noland, Robert B., 2001. "Relationships between highway capacity and induced vehicle travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(1), pages 47-72, January.
    3. Crain, W Mark & Oakley, Lisa K, 1995. "The Politics of Infrastructure," Journal of Law and Economics, University of Chicago Press, vol. 38(1), pages 1-17, April.
    4. Pavithra Parthasarathi & David M. Levinson & Ramachandra Karamalaputi, 2003. "Induced Demand: A Microscopic Perspective," Urban Studies, Urban Studies Journal Limited, vol. 40(7), pages 1335-1351, June.
    5. Bhat, Chandra R. & Castelar, Saul, 2002. "A unified mixed logit framework for modeling revealed and stated preferences: formulation and application to congestion pricing analysis in the San Francisco Bay area," Transportation Research Part B: Methodological, Elsevier, vol. 36(7), pages 593-616, August.
    6. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
    7. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lei Zhang & David Levinson, 2006. "Economics of Road Network Ownership," Working Papers 200908, University of Minnesota: Nexus Research Group.
    2. David Levinson & Ramachandra Karamalaputi, 2003. "Predicting the Construction of New Highway Links," Working Papers 200305, University of Minnesota: Nexus Research Group.
    3. Lei Zhang & David Levinson, 2005. "Road Pricing with Autonomous Links," Working Papers 200506, University of Minnesota: Nexus Research Group.
    4. repec:eee:trapol:v:58:y:2017:i:c:p:72-79 is not listed on IDEAS
    5. David Levinson, 2008. "Density and dispersion: the co-development of land use and rail in London," Journal of Economic Geography, Oxford University Press, vol. 8(1), pages 55-77, January.
    6. Hongyan Chen & Ruwen Qin, 2012. "Real options as an incentive scheme for managing revenues in transportation infrastructure projects," International Journal of Revenue Management, Inderscience Enterprises Ltd, vol. 6(1/2), pages 77-101.
    7. Nikolas Geroliminis & David Levinson, 2008. "Cordon pricing consistent with the physics of overcrowding," Working Papers 000038, University of Minnesota: Nexus Research Group.
    8. David Levinson & Wei Chen, 2004. "Paving New Ground," Working Papers 200509, University of Minnesota: Nexus Research Group.
    9. Lei Zhang & David Levinson, 2006. "The Economics of Transportation Network Growth," Working Papers 200710, University of Minnesota: Nexus Research Group.
    10. C. Jacobs-Crisioni & C. C. Koopmans, 2016. "Transport link scanner: simulating geographic transport network expansion through individual investments," Journal of Geographical Systems, Springer, vol. 18(3), pages 265-301, July.
    11. Martin, Juan Carlos & García-Palomares, Juan Carlos & Gutierrez, Javier & Román, Concepción, 2010. "Efficiency and equity of orbital motorways in Madrid," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(1), pages 67-84.
    12. Feng Xie & David Levinson, 2009. "Jurisdictional Control and Network Growth," Networks and Spatial Economics, Springer, vol. 9(3), pages 459-483, September.
    13. David Levinson & Wei Chen, 2007. "Area Based Models of New Highway Route Growth," Working Papers 200708, University of Minnesota: Nexus Research Group.
    14. Lei Zhang & David Levinson & Shanjiang Zhu, 2007. "Agent-Based Model of Price Competition and Product Differentiation on Congested Networks," Working Papers 200809, University of Minnesota: Nexus Research Group.

    More about this item

    Keywords

    Network expansion; Cost Model; Transportation forecasting; adjacent links in a network.;

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D10 - Microeconomics - - Household Behavior - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nex:wpaper:inducedsupply. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Levinson). General contact details of provider: http://edirc.repec.org/data/nexmnus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.