Information Technology and Transportation: Substitutes or Complements?
The increased availability and prevalence of Information and Communications Technology (ICT) provides opportunities to use such products as substitutes for transportation. Common examples of this substitution are telecommuting, video conferences, and online classes. However, despite the intuitive appeal of a substitution relationship existing between ICT and transportation, prior research has indicated that the relationship between ICT and transportation is quite complex; at times ICT substitutes for travel and at other times ICT and travel complement each other. Therefore, using a Quadratic Almost Ideal Demand System (QUAIDS) model and data from the US Consumer Expenditure Survey and the Consumer Price Index, I analyzed the effect of ICT expenditures on transportation demand. The analysis indicates that ICT may serve as a substitute for air travel, but primarily serves as a complement for private transportation. Overall the data supports a complementary relationship between ICT and transportation, which indicates that an increase in technology may increase rather than decrease the negative externalities associated with transportation.
|Date of creation:||23 Apr 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cooper, Russel J & McLaren, Keith R, 1996. "A System of Demand Equations Satisfying Effectively Global Regularity Conditions," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 359-64, May.
- Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-83, June.
- James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
- Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
- David Banister & Dominic Stead, 2004. "Impact of information and communications technology on transport," Transport Reviews, Taylor & Francis Journals, vol. 24(5), pages 611-632, January.
- Gallant, A. Ronald, 1981. "On the bias in flexible functional forms and an essentially unbiased form : The fourier flexible form," Journal of Econometrics, Elsevier, vol. 15(2), pages 211-245, February.
- Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Patricia Mokhtarian & Ilan Salomon & Susan Handy, 2006. "The Impacts of Ict on leisure Activities and Travel: A Conceptual Exploration," Transportation, Springer, vol. 33(3), pages 263-289, 05.
- Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-99, September.
- Douglas Fisher & Adrian R. Fleissig & Apostolos Serletis, 2001. "An empirical comparison of flexible demand system functional forms," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(1), pages 59-80.
- Donald W. Jones, Paul N. Leiby and Inja K. Paik, 2004. "Oil Price Shocks and the Macroeconomy: What Has Been Learned Since 1996," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-32.
- Donggen Wang & Fion Law, 2007. "Impacts of Information and Communication Technologies (ICT) on time use and travel behavior: a structural equations analysis," Transportation, Springer, vol. 34(4), pages 513-527, July.
- Brian P. Poi, 2012. "Easy demand-system estimation with quaids," Stata Journal, StataCorp LP, vol. 12(3), pages 433-446, September.
- Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
- Barnett, William A, 1983. "New Indices of Money Supply and the Flexible Laurent Demand System," Journal of Business & Economic Statistics, American Statistical Association, vol. 1(1), pages 7-23, January.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:46548. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.