Speed and Income

Mogens Fosgerau

Speed and Income

Mogens Fosgerau

Research output: Chapter in Book/Report/Conference proceeding › Article in proceedings › Research

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
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 - Aalborg, Denmark Duration: 25 Aug 2003 → 26 Aug 2003

Conference

Conference	Trafikdage
Country	Denmark
City	Aalborg
Period	25/08/2003 → 26/08/2003

Access to Document

http://www.trafikdage.dk/td/papers/papers03/trafikdage-2003-141.pdf

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Cite this

@inproceedings{d8108906d2864214a1bbc0418b83df9f,

title = "Speed and Income",

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.",

author = "Mogens Fosgerau",

year = "2003",

language = "English",

booktitle = "Trafikdage p{\aa} Aalborg Universitet",

publisher = "Trafikforskningsgruppen p{\aa} Aalborg Universitet",

note = "Trafikdage ; Conference date: 25-08-2003 Through 26-08-2003",

}

TY - GEN

T1 - Speed and Income

AU - Fosgerau, Mogens

PY - 2003

Y1 - 2003

N2 - 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.

AB - 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.

M3 - Article in proceedings

BT - Trafikdage på Aalborg Universitet

PB - Trafikforskningsgruppen på Aalborg Universitet

T2 - Trafikdage

Y2 - 25 August 2003 through 26 August 2003

ER -