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Is the intertemporal income elasticity of the value of travel time unity?
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics Stockholm.
2008 (English)Report (Other academic)
Abstract [en]

The purpose of this study is to estimate the intertemporal income elasticity of the value of travel time (VTT) and test whether it differs from one. The empirical analysis is performed on Swedish revealed preference data, where voluntary job changers' individual wage premium for commuting time changes is used as an estimate of VTT. The panel structure of the data implies the opportunity to use a lagged net income variable on individual level to estimate the income elasticity in an intertemporal way. The result does not support an intertemporal income elasticity of VTT that is different from one and this result is robust over several different empirical specifications. Hence, the policy implication of this study is in contrast to a recent recommendation by an EU-financed project, Heatco, which propose an intertemporal income elasticity of 0.7.

Place, publisher, year, edition, pages
Stockholm: Statens väg- och transportforskningsinstitut, 2008. , 38 p.
, Working Papers, Swedish National Road & Transport Research Institute (VTI), 2008:3
Keyword [en]
Value analysis, Journey time, Journey to work, Commuter, Income, Statistical analysis, Mathematical model
National Category
Research subject
Road: Transport, society, policy and planning, Road: Personal transport; Road: General works, surveys, comprehensive works, Road: Economics
URN: urn:nbn:se:vti:diva-689OAI: diva2:669389
Available from: 2013-12-03 Created: 2013-12-03 Last updated: 2014-05-14Bibliographically approved

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Swärdh, Jan-Erik
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Transport economics Stockholm

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