Speed and income
Research output: Contribution to journal › Journal article › Research › peer-review
The relationship between speed and income is established in a microeconomic 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 used to perform regressions of speed on income, distance travelled, and a number of controls. The results are clearly statistically significant and indicate an average income elasticity of speed of 0.02; it is smaller at short distances and about twice as large at the longest distance investigated of 200 km.
Original language | English |
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Journal | Journal of Transport Economics and Policy |
Volume | 39 |
Issue number | 2 |
Pages (from-to) | 225-240 |
Number of pages | 16 |
ISSN | 0022-5258 |
Publication status | Published - May 2005 |
ID: 181873118