Abstract
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.
| Originalsprog | Engelsk |
|---|---|
| Tidsskrift | Journal of Transport Economics and Policy |
| Vol/bind | 39 |
| Udgave nummer | 2 |
| Sider (fra-til) | 225-240 |
| Antal sider | 16 |
| ISSN | 0022-5258 |
| Status | Udgivet - maj 2005 |