EconPapers    
Economics at your fingertips  
 

Pricing and investment of cross-border transport infrastructure

Se-il Mun and Shintaro Nakagawa
Additional contact information
Shintaro Nakagawa: Institute of Economic Research, Kyoto University

No 661, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: We develop a simple two-country model of international trade in which the transportation cost between countries is endogenously determined by decisions concerning capacity and price (road toll, rail fare) of infrastructure. We evaluate alternative regimes of pricing and investment, i.e., free access (e.g., public road), pricing and investment by two governments, and private operation. Comparisons between free-access and other regimes reveal that pricing plays a positive role of encouraging investment. However, pricing by governments results in lower welfare since excessively high prices are charged. We also show that higher welfare could be attained by elaborating the design of bidding systems for the right to build and operate the infrastructure.

JEL-codes: H54 R42 R48 (search for similar items in EconPapers)
Pages: 30pages
Date: 2008-09
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.kier.kyoto-u.ac.jp/DP/DP661.pdf (application/pdf)

Related works:
Journal Article: Pricing and investment of cross-border transport infrastructure (2010) Downloads
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:kyo:wpaper:661

Access Statistics for this paper

More papers in KIER Working Papers from Kyoto University, Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Ryo Okui (). This e-mail address is bad, please contact .

 
Page updated 2020-03-30
Handle: RePEc:kyo:wpaper:661