Demand for Transportation

What are economies of agglomeration?

The cost savings and productivity gains that occur when people, firms, and institutions are located closer to one another

When did transportation economics emerge as a field?

Late 1950s

Who MOST contributed to transportation economics?

John R. Meyer

Meyer blended economic theory and…

Civil engineering

Transportation economics requires specialized statistical models such as…

Discrete choice models

What is demand of transportation?

How many people and goods need to move across space and time

What is supply of transportation?

How well transportation systems accomodate movements

How are the prices of transportation assessed?

Through generalized cost

What is generalized cost?

Monetary expenses and the value of travel time

What type of demand is transportation demand?

Derived demand

When does passenger transportation arise?

When individuals seek opportunities in places different from where they currently are

The demand for freight transportation is tied to…

The geography of consumption and production

Freight demand is sensitive to…

Energy costs, trade agreements, and supply chains

What is departure time choice?

When the trip takes place

What is destination choice?

Where the trip will end

What is mode choice?

How the trip will be made

What is route choice?

The specific path taken for the trip

What is the value of travel time?

How much a traveler is willing to pay to save time

What are the two main reasons that value of travel time varies across individuals and companies?

Income and trip purpose

Higher-income travelers have a _______ value of time

Higher