Speed and income
The relationship between speed and income is established in a micro- economic model focusing on the trade-off between travel time and the risk of receiving a penalty for exceeding the speed limit. This is used to determine when a rational driver will choose to exceed the speed limit. The relationship between speed and income is found again in the empirical analysis of a cross-sectional dataset comprising 60.000 observations of car trips. This is utilised to perform regressions of speed on income, distance travelled and a number of controls. The results are clearly significant and indicate an average income elasticity of speed of 0.03; it is smaller at short distances and about twice as large at the longest distance investigated of 200 km.
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.:
- Gander, James P., 1985. "A utility-theory analysis of automobile speed under uncertainty of enforcement," Transportation Research Part B: Methodological, Elsevier, vol. 19(3), pages 187-195, June.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpur:0405002. 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: (EconWPA)
If references are entirely missing, you can add them using this form.