The fundamental law of highway congestion revisited: Evidence from national expressways in Japan

Hsu, Wen‐Tai; Zhang, Hongliang

doi:10.1016/j.jue.2014.02.002

Cited by 74 publications

(43 citation statements)

References 10 publications

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“…Migration in response to new roads and diversion of traffic from other networks appears to be least important. Hsu and Zhang (2012) replicate the analysis of Duranton and Turner (2011) using Japanese data. They arrive at the same conclusion.…”

Section: Infrastructure and Miscellaneous City Level Outcomesmentioning

confidence: 89%

“…Since the network plan was developed under a mandate to serve military purposes, the validity of this instrument hinges on the extent to which military purposes are orthogonal to the needs of post war commuters. Several other empirical investigations into the effects of the U.S. road and highway network exploit instruments based on the 1947 highway plan, while Hsu and Zhang (2012) develop a similar instrument for Japan. Michaels et al (2012) uses an even earlier plan of the empirical literature.…”

Section: Planned Route IVmentioning

confidence: 99%

“…Hsu and Zhang (2012) relies on historical Japanese railroad networks. Martincus et al (2012) uses the Inca roads for Peru.…”

Section: Historical Route IVmentioning

confidence: 99%

See 2 more Smart Citations

Transportation Costs and the Spatial Organization of Economic Activity

Redding

Turner

2015

Handbook of Regional and Urban Economics

288

127

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This paper surveys the theoretical and empirical literature on the relationship between the spatial distribution of economic activity and transportation costs. We develop a multi-region model of economic geography that we use to understand the general equilibrium implications of transportation infrastructure improvements within and between locations for wages, population, trade and industry composition. Guided by the predictions of this model, we review the empirical literature on the effects of transportation infrastructure improvements on economic development, paying particular attention to the use of exogenous sources of variation in the construction of transportation infrastructure. We examine evidence from different spatial scales, between and within cities. We outline a variety of areas for further research, including distinguishing reallocation from growth and dynamics.

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Section: Infrastructure and Miscellaneous City Level Outcomesmentioning

confidence: 89%

Section: Planned Route IVmentioning

confidence: 99%

See 1 more Smart Citation

Transportation Costs and the Spatial Organization of Economic Activity

Redding

Turner

2015

Handbook of Regional and Urban Economics

288

127

View full text Add to dashboard Cite

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“…The accepted range of 0.5 to 0.9 was challenged by a Duranton and Turner study in 2011 which found an elasticity of 1.03 on interstate freeways in the United States, indicating no benefits from increased freeway capacity. This was followed up by a similar study in Japan by Hsu and Zhang (2014) that the elasticity could exceed 1.2, indicating the potential for a new equilibrium of travel speed that is lower after capacity expansion. In the reverse direction, Chung et al (2012) analyzed the short and long term effects of a noteworthy freeway removal above the Cheonggyechoen River in Seoul.…”

Section: Studies Of Induced Travelmentioning

confidence: 84%

Searching for induced travel: Elimination of a freeway bottleneck and subsequent effects on rail and freeway volumes

Seeherman

Skabardonis

2016

Case Studies on Transport Policy

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The removal of a freeway bottleneck in California has allowed researchers to investigate shortterm induced travel and a potential mode switch from rail transit. This particular bottleneck, a double lane drop from reduced tunnel capacity, is a unique case as alternate auto routes are quite undesirable; the only other option is to consider nearby rail transit. Freeway volumes and rail ridership were examined before and after the removal of the bottleneck to estimate the extent of induced travel. Freeway volumes during both commute periods increased 10-13%, faster than other nearby locations, and rail transit ridership between stations on either side of the preexisting bottleneck showed modest declines despite system wide increases. Differences of means testing confirmed that many of these changes were statistically significant. Examining the magnitude of induced travel is relevant when making policy decisions for removing mature bottlenecks that involve the use of public finances.

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“…Besides the methodological similarity to the macro-econometric literature, our research directly connects to a wide range of urban economics research that aims at establishing the unidirectional causal impact of transport supply on economic outcome measures using either quasi-experimental (Ahlfeldt, 2013;McDonald & Osuji, 1995;McMillen & McDonald, 2004;Michaels, 2008) or instrumental variable (IV) designs (Baum-Snow, 2007;Baum-Snow, et al, 2012;Duranton & Turner, 2011Holl & Viladecans-Marsal, 2011;Hornung, 2012;Hsu & Zhang, 2011). These studies typically implicitly or explicitly assume that the supply of infrastructure is uncorrelated with the previous trend in observed economic outcome in a particular case or that an IV is at hand that predicts transport supply, but is conditionally uncorrelated with the outcome.…”

Section: Introductionmentioning

confidence: 99%

Chicken or egg? The PVAR econometrics of transportation

2014

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Abstract:To analyse the mutually dependent relationship between local economic performance, demand for and supply of transport services, we employ the structural panel VAR method that is popular in the macroeconomic literature, but has not previously been applied to the modelling of the within-city dynamics of transportation. We focus on a within-city panel of Berlin, Germany during the heyday of the construction of its dense public transit network . Our results suggest that economic outcomes and a supply of transport infrastructure mutually determine each other. We find a short-run (long-run) elasticity of property prices with respect to transport supply of 2% (8.5%). Both transport demand and supply seem to be driven more by firms than by residents.

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The fundamental law of highway congestion revisited: Evidence from national expressways in Japan

Cited by 74 publications

References 10 publications

Transportation Costs and the Spatial Organization of Economic Activity

Transportation Costs and the Spatial Organization of Economic Activity

Searching for induced travel: Elimination of a freeway bottleneck and subsequent effects on rail and freeway volumes

Chicken or egg? The PVAR econometrics of transportation

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