Induced Supply: A Model of Highway Network Expansion at the Microscopic Level

David Levinson and Ramachandra Karamalaputi

No 200304, Working Papers from University of Minnesota: Nexus Research Group

Abstract: This paper examines the growth of a network based on the present conditions of the network, traffic demand, other demographic characteristics, project costs, and a budget constraint. The effects of expanding a link on its upstream and downstream neighbors, as well as on parallel links are also considered. Data spans two decades and consists of data on physical attributes of the network, their expansion history and AADT values on each of the links. A non-linear cost model is developed for the Twin Cities Metropolitan Area. Results show that high capacity links are more likely to be expanded and a higher budget result in more links being expanded. Large population in the surrounding region deters two-lane expansion because of the high cost associated with such an expansion but a one-lane expansion is favored. One of the important results of this research is that the rate of network expansion has decreased over the years.

Keywords: Network expansion; Cost Model; Transportation forecasting; adjacent links in a network. (search for similar items in EconPapers)
JEL-codes: D10 D83 D85 O33 R41 R42 R48 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published in Journal of Transport Economics and Policy , Volume 37, Part 3, September 2003, pp. 297–318

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http://hdl.handle.net/11299/179908 First version, 2007 (application/pdf)

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Journal Article: Induced Supply: A Model of Highway Network Expansion at the Microscopic Level (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:nex:wpaper:inducedsupply

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