Speed and income

Mogens Fosgerau

Urban/Regional from University Library of Munich, Germany

Abstract: The relationship between speed and income is established in a micro- economic 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 utilised to perform regressions of speed on income, distance travelled and a number of controls. The results are clearly significant and indicate an average income elasticity of speed of 0.03; it is smaller at short distances and about twice as large at the longest distance investigated of 200 km.

Keywords: Speed; income (search for similar items in EconPapers)
JEL-codes: R41 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2004-05-07
New Economics Papers: this item is included in nep-geo
Note: Type of Document - pdf; pages: 21. 21 pages pdf
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https://econwpa.ub.uni-muenchen.de/econ-wp/urb/papers/0405/0405002.pdf (application/pdf)

Related works:
Journal Article: Speed and Income (2005)
Working Paper: Speed and income (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpur:0405002

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