Speed and Income

Mogens Fosgerau ()

Journal of Transport Economics and Policy, 2005, vol. 39, issue 2, pages 225-240

Abstract: The relationship between speed and income is established in a microeconomic 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 used to perform regressions of speed on income, distance travelled, and a number of controls. The results are clearly statistically significant and indicate an average income elasticity of speed of 0.02; it is smaller at short distances and about twice as large at the longest distance investigated of 200 km. © 2005 LSE and the University of Bath

Date: 2005

Downloads: (external link)
http://www.catchword.com/cgi-bin/cgi?ini=bc&body=l ... 0050501)39:2L.225;1- (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Speed and income (2004)
Working Paper: Speed and income (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:tpe:jtecpo:v:39:y:2005:i:2:p:225-240

Access Statistics for this article

Journal of Transport Economics and Policy is edited by Steven Morrison, Tae Oum and David Starkie

More articles in Journal of Transport Economics and Policy from London School of Economics and University of Bath
Series data maintained by Christopher F. Baum ().