Speed and Income

Mogens Fosgerau

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearch


The average speed on Danish motorways has been increasing for a number of years. In this paper we seek to provide at least a partial explanation for this development. First we establish in a micro-economic model how higher income can lead to a higher choice of speed. With increasing income, the value of time increases and the costs of driving faster decreases in importance, both operating costs and potential fines. Second, we utilize a cross-section dataset comprising 60.000 observations of car trips to perform a regression of speed on income, distance traveled and a number of controls. The results indicate a clear relationship between speed and income whereby a 100.000 kroner increase in pretax income, about 35 percent of the average income in the sample, is associated with a speed increase of 2 km/h at a longer distance.
Original languageEnglish
Title of host publicationTrafikdage på Aalborg Universitet
Number of pages13
PublisherTrafikforskningsgruppen på Aalborg Universitet
Publication date2003
Publication statusPublished - 2003
Externally publishedYes
EventTrafikdage på Aalborg Universitet 2003 - Aalborg, Denmark
Duration: 25 Aug 200326 Aug 2003


ConferenceTrafikdage på Aalborg Universitet 2003


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