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Transport demand and users' benefits with fixed income: The goods/leisure trade off revisited
Institution:1. Institute of Transport Studies, Monash University, Victoria, Australia;2. School of Aviation, University of New South Wales, Australia;1. School of Economics and Management, Beijing University of Chemical Technology, Beijing, 100029, China;2. College of Information Science and Technology, Beijing University of Chemical Technology, Beijing, 100029, China
Abstract:Usually accepted assumptions on the role of income in transport demand modelling are changed, in order to better account for the reality within developing countries. The usual specification of representative utility is shown to be inadequate and new forms are suggested. In particular, an expenditure rate is proposed to replace the wage rate which usually divides mode cost. Measures of both users' benefits and value of time are also shown to change. Some empirical results previously reported within developed countries are shown to be better explained under this new approach.
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