This paper studies the second-best problem where not all links of a congested transportation network can be tolled. The second-best tax rule for this problem is derived for general static networks, so that the solution presented is valid for any graph of the network and any set of tolling points...

For several decades growth of traffic volumes has outstripped investments in road infrastructure. The result has been a relentless increase in traffic congestion. This paper reviews the economic principles behind congestion pricing in static and dynamic settings, which derive from the benefits...

Transportation researchers have long struggled to find satisfactory ways of describing and analysing traffic congestion, as evident from the large number of often competing approaches and models that have been developed. This paper aims to provide a review of the literature on this topic. The...

Conventional economic models of traffic congestion assume that the relation between road use and speed is a technical one. In this paper we derive the speed-flow relationship from more fundamental considerations concerning driving behaviour. We develop a structural model in which drivers choose...

This paper studies the second-best problem where not all links of a congested transportation network can be tolled. The second-best tax rule for this problem is derived for general static networks, so that the solution presented is valid for any graph of the network, and for any set of tolling...

Research on 'happiness' suggests that once an average per capita income of around US$10,000 is achieved in a country, further increases in income will not lead to a significant increase in happiness. Additional income will probably often be spent on the satisfaction of mainly 'relative' needs,...

This paper discusses a number of issues that will become increasingly important now that the concept of marginal external cost pricing becomes more likely to be implemented as a policy strategy in transport in reality. The first part of the paper deals with the long-run efficiency of marginal...

This paper proposes an alternative, dynamic framework for estimating time-varying values of travel time savings and values of schedule delay, in which time-preferences are represented as the time-varying excess-willingness-to-pay (EWPT) to being in the one location, over being elsewhere. It is...

Ohta (2001) claims to have resolved a die-hard controversy on traffic congestion modeling by defining an inverse aggregate demand function that has traffic density as its argument-in Ohta's terminology the 'primitive term.'Using this demand function, Ohta shows that 'hypercongestion' may very...

Urban re-development projects may generate various positive as well as negative spatial externalities to the existing population in a given area. This study aims to assess the order of magnitude of the expected net benefits for incumbent residents from a large scale project in the Southern part...