Abstract
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 language | English |
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Title of host publication | Trafikdage på Aalborg Universitet |
Number of pages | 13 |
Publisher | Trafikforskningsgruppen på Aalborg Universitet |
Publication date | 2003 |
Publication status | Published - 2003 |
Externally published | Yes |
Event | Trafikdage på Aalborg Universitet 2003 - Aalborg, Denmark Duration: 25 Aug 2003 → 26 Aug 2003 |
Conference
Conference | Trafikdage på Aalborg Universitet 2003 |
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Country/Territory | Denmark |
City | Aalborg |
Period | 25/08/2003 → 26/08/2003 |