EconPapers    
Economics at your fingertips  
 

Effect of the Introduction of High-speed Trains on Consumer Welfare

Ji Sun Baek

KDI Journal of Economic Policy, 2016, vol. 38, issue 1, 23-52

Abstract: This paper examines the impact of introducing high-speed trains on consumer welfare, taking the ensuing changes in train schedules into account. Based on the estimated demand model for travel which incorporates consumer's heterogeneous preferences for travel schedules into the standard discrete-choice model, I separately evaluate the impact from adding high-speed trains and that from changes in train schedules. The results indicate that consumers who travel between two cities connected by high-speed trains benefit from the introduction of high-speed trains, while some travelers whose choice set does not include high-speed trains face a reduced frequency of non-high-speed trains, resulting in significant losses.

Keywords: Endogenous product characteristics; New product entry; Consumer surplus; Highspeed train; Korea; KTX (search for similar items in EconPapers)
JEL-codes: L13 L92 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/200782/1/kdi-jep-38-1-2.pdf (application/pdf)

Related works:
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: https://EconPapers.repec.org/RePEc:zbw:kdijep:v:38:y:2016:i:1:p:23-52

Access Statistics for this article

KDI Journal of Economic Policy is currently edited by Dongseok Kim

More articles in KDI Journal of Economic Policy from Korea Development Institute (KDI) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2020-02-14
Handle: RePEc:zbw:kdijep:v:38:y:2016:i:1:p:23-52