Pricing Road Congestion: Recent Evidence from Singapore

The role of road pricing in travel demand management and congestion mitigation has been gaining support in many countries. Although the theory of congestion pricing is persuasive and straightforward, successful application of road pricing mandates that congestion externalities be estimated. Using data from a recent traffic survey in Singapore, this paper estimates congestion prices for alternative time values and vehicle types. These estimates are compared with the existing cost of area licenses, from which implications for economic efficiency and resource allocation are drawn.     

Pricing, Capacity Choice, and Financing in Transportation Networks

Abstract.  This paper explores interrelations between pricing, capacity choice, and financing in transportation networks. We build on the Mohring‐Harwitz result on self‐financing of optimally designed and priced roads and investigate it in a network environment under various types of second‐best regulation. A small network model with endogenous car ownership demonstrates that optimal congestion pricing and capacity choice over an entire network may cause user prices to increase more in initially mildly congested areas compared to heavily congested areas. Furthermore, a flat kilometer charge under optimal capacity choice may result in first‐best efficiency gains.     

SPATIAL ASYMMETRIC DUOPOLY WITH AN APPLICATION TO BRUSSELS' AIRPORTS*

ABSTRACT In this paper, the problem of a city with access to two firms or facilities (shopping malls, airports, commercial districts) selling a differentiated product (shopping, flights) and/or offering a differentiated workplace is studied. Transport connections to one facility are congested. A model is presented for this asymmetric duopoly game that can be solved for a Nash equilibrium in prices and wages. A comparative statics analysis is used to illustrate the properties of the equilibrium. A numerical model is then applied to the two Brussels airports. Three stylized policies are implemented to address the congestion problem: expansion of transport capacity, congestion pricing, and a direct subsidy to the uncongested facility. Our results indicate that the degree of intrinsic differentiation between the two firms is crucial in determining the difference in profit and market share. Price and wage differences also depend on trip frequency and consumer preferences for diversity. Congestion pricing is the most effective policy tool but all three options are shown to have attractive attributes.     

Innovation and the Entrepreneurial State in Asia: Mechanisms of Bond Market Development

Abstract

Bond markets have expanded rapidly in emerging East Asian economies in recent years. Asian policymakers have played a pivotal role in this development. This process presents an interesting challenge to the developmental state literature associated with bank-based financial systems. We argue that it is best to understand the role of the state as an entrepreneurial state in the construction of these markets, focusing on institutional innovation in three mechanisms of state-led market infrastructure: national or local credit rating agencies, mortgage corporations and bond pricing agencies. National credit rating agencies rate the creditworthiness of debt in local currency. Mortgage corporations create markets in securitised housing loans. Bond pricing agencies put a value on illiquid debt instruments to enable mark-to-market portfolio management. Together, these three mechanisms constitute the core determinants of the market (demand for creditworthy products, supply of tradeable assets, and the fixing of a price to those assets). In so doing they influence the nature of market operations, producing outcomes very different from the free market ideal type. We also consider cross-country commonalities and variations in this general pattern.     

Dynamic road pricing and the value of time and reliability

High Occupancy Toll (HOT) lanes that use dynamic pricing to manage congestion and generate revenue are increasingly popular. In this paper, we estimate the behavioral response of drivers to dynamic pricing in an HOT lane. The challenge in estimation lies in the simultaneity of price and demand: the structure of dynamic tolling ensures that prices increase as more drivers enter the HOT lane. Prior research has found that higher prices in HOT lanes increase usage. We find that after controlling for simultaneity HOT drivers instead respond to tolls in a manner consistent with economic theory. The average response to a 10 percent increase in the toll is a 1.6 percent reduction in usage. Drivers primarily value travel reliability over time savings, although there is heterogeneity in the relative values of time and reliability based on time of day and destination to or from work. The results highlight the importance of both controlling for simultaneity when estimating demand for dynamically priced toll roads and treating HOT lanes with dynamic prices as a differentiated product with bundled attributes.     

Private Benefits and Public Costs: Policies to Address Suburban Sprawl

The uneven development and disparities that exist in most metropolitan regions are the consequence of a combination of private decisions and public policies. Public policy can also redress some of these inequities and redirect the pattern of growth. The article discusses individual policies—ranging from congestion pricing to regional governance—in detail. Each policy is assessed in terms of its contribution to slowing metropolitan deconcentration, its feasibility of implementation, and its power to redress inequities. Four policies appear most promising: the utilization.of impact fees, especially on a supra-local level; reverse commuting programs; special taxing districts for regionwide amenities; and continued revitalization efforts in the central city     

Discovering Price in All the Wrong Places: The Work of Commodity Definition and Price under Neoliberal Environmental Policy

Abstract: Price plays a unique role in neoliberal economic theory, quantifying value and providing markets with the information needed to produce equilibrium conditions and optimal social welfare. While the role of price is clear, the mechanisms by which prices are discovered, and by which the commodities they value are defined, are left obscure in neoliberal theory. Automatic price discovery, and self‐evident commodity identities, are assumed. Observation of newly created markets in ecosystem services suggests that this is a moment of significant tension within neoliberal practice, as potential market participants seek guidance from the state on appropriate commodity measures and pricing practices. Bureaucrats and economists, following the neoliberal preference for governance over government, turn the task back onto civil society. The invocation of abstract rules, instead of the formulation of practical guidance, by policymakers means that the neoliberal marketization of non‐market public goods is a contingent and sometimes rudderless task for those who must make markets work on the ground. This presents many opportunities for constructive engagement on the part of geographers and other critics of neoliberal strategy.     

‘Marriage’, ‘Massage', Metaphor and Gender in US–Iranian Relations During the 1960s

Abstract

Although they were allies, during the 1960s relations between the United States and Iran were fraught with tensions. For American policymakers, Iran was an important Cold War client and oil-supplier in a turbulent region. It was vital, therefore, to maintain a good relationship with the Shah of Iran. Indeed, United States policy was based in large part on American assessments of the Shah as an individual. This article seeks to assess how the language and metaphors used by American policymakers to describe and understand the Shah reflected and informed United States policy. Officials within the Kennedy and Johnson administrations viewed the Shah through a highly gendered lens that magnified perceptions of him as a weak, highly sensitive and irrational leader – characteristics deemed to be overly feminine. This article therefore contends that US policy towards Iran was influenced by gender stereotypes as policymakers lamented their reliance on the Shah, who they deemed to be insufficiently 'masculine'.     

Navigating the Social Safety Net: A State‐Level Analysis of the Relationship between Medicaid and Consumer Bankruptcy

The social safety net in the United States consists of a variety of programs administered by both federal and state governments. Although the populations served by social programs such as Medicaid and consumer bankruptcy likely overlap, policymakers tend to look at individual programs unilaterally and often fail to communicate appropriately with legislators and political leaders at differing levels of government. The result of such an incremental approach to policy reform is a fragmented social safety net system in the United States. In this study, the relationship between two social programs belonging to the larger social safety net is examined, and recommendations for policymakers are offered.     

世界遗产旅游产品性质与定价机制研究——以世界自然遗产九寨沟为例

文章以世界遗产景区九寨沟为例,分析了世界遗产旅游产品的性质,即：由公共资源和一系列服务耦合而成的复合性产品,具有“准公共产品”的性质。政府部门和私人部门结合提供世界遗产旅游产品,能兼顾社会福利与经济效率。而在我国,作为国家公共资源的世界遗产的属地管理体制,导致了世界遗产景区旅游产品定价的利润最大化倾向。文章结合我国国情,提出世界遗产旅游产品定价应采取平均成本加一定比例发展基金的定价方法和政府指导下市场供给定价相结合的方式。     

The general equilibrium effects of high-occupancy vehicle lanes on congestion,sprawl, energy use,and carbon emissions

High-occupancy vehicle (HOV) lanes have been promoted to encourage carpools, reduce traffic congestion, and improve air quality. At the partial equilibrium level, commuting with three workers per automobile clearly reduces highway congestion, lowers carbon emissions, and saves energy compared with three single drivers. This paper develops a numerical urban simulation model to generate the general equilibrium effects of HOV lanes on urban spatial structure, energy use, and greenhouse gas emissions. The major findings are that while HOV lanes reduce traffic congestion and improve welfare, the fall in transportation cost leads to urban sprawl, which results in higher dwelling energy use and a larger carbon footprint. Overall, the HOV lane policy has little effect on total energy consumption and carbon emissions. This is another classic case of general equilibrium effects reversing the partial equilibrium effects of an urban policy. In contrast, a gasoline tax policy leads to less urban sprawl but is less effective at lowering energy consumption and carbon emissions. Imposing congestion tolls is a more effective tool at reducing traffic congestion, saving energy, and lowering carbon emissions.     

Canada and the United States—Trading Partners and Transfer Pricing Opponents?

Given the significant trading relationships between Canada and the United States, their transnational corporations and their tax authorities share more than a border. However, differences in transfer pricing regulations, tax rates, and regulatory enforcement philosophies have exacerbated many existing risks, and created new risks for executives in these corporations. These risks must be managed proactively, yet attempts at risk management are often incompatible with one tax authority or the other. Assuming that an operational transfer pricing framework is in place, there are several proactive strategies available to mitigate transfer pricing risk and potentially satisfy both tax authorities. An operational framework and proactive strategies, including documentation and advance pricing agreements, are discussed from the Canadian and US perspective, including expert interviews.     

URBAN GROWTH EXTERNALITIES AND NEIGHBORHOOD INCENTIVES: ANOTHER CAUSE OF URBAN SPRAWL?*

ABSTRACT This paper suggests a cause of low density urban development or urban sprawl that has not been given much attention in the literature. There have been a number of arguments put forward for market failures that may account for urban sprawl, including incomplete pricing of infrastructure, environmental externalities, and unpriced congestion. The problem analyzed here is that urban growth creates benefits for an entire urban area, but the costs of growth are borne by individual neighborhoods. An externality problem arises because existing residents perceive the costs associated with the new residents locating in their neighborhoods, but not the full benefits of new entrants which accrue to the city as a whole. The result is that existing residents have an incentive to block new residents to their neighborhoods, resulting in cities that are less dense than is optimal, or too spread out. The paper models several different types of urban growth, and examines the optimal and local choice outcomes under each type. In the first model, population growth is endogenous and the physical limits of the city are fixed. The second model examines the case in which population growth in the region is given, but the city boundary is allowed to vary. We show that in both cases the city will tend to be larger and less dense than is optimal. In each, we examine the sensitivity of the model to the number of neighborhoods and to the size of infrastructure and transportation costs. Finally, we examine optimal subsidies and see how they compare to current policies such as impact fees on new development.     

Just War and Terrorism: A New Policy Perspective

The idea of terrorism as policy in any policy discussion is abhorrent in most academic circles. The fact is, however, if one removes the emotion attached to the use of terrorism and approaches it as a tool it can be placed in several models used by policymakers today. For many centuries the concept of “just war” has been discussed by philosophers, policymakers, and warriors. When standards have been established that those engaged in conflict can use to determine whether or not an action is considered “just.” How did Christianity in particular move from emphasizing love (agapē, caritas) to the acceptance of waging war? This problem was dealt with when the law of war was included in discussion of natural law theory.     

A Spatial Price Determination Model for Multi‐Market Heterogeneously Distributed Resources: An Application to Forestry Markets in Sweden

The spatial dimension is a key paradigm in price determination, as attested by recent studies in the literature that highlighted the differential in market behavior between spatial and non‐spatial pricing settings. In this paper, we develop a model of spatial pricing for multi‐market heterogeneously distributed resources, with an application to the Swedish forestry sector. The focus of the model is to estimate the impact of spatial interaction on the demand for resources in terms of resource allocation, competition, and pricing. In its core, the pricing mechanism relies on a supply–demand framework. Using disaggregated data at the gridcell level for forest feedstock supply and harvesting costs in Sweden, we construct regional supply curves for each gridcell assuming a maximum transportation distance to delimit the potential market. Demand nodes are exogenously determined and are adjusted using a distance‐decay model to assess demand pressure across locations. We apply the model empirically to assess the impact on forest feedstock prices of a 20 TWh increase in biofuel production.     

The effect of economic sanctions on the severity of genocides or politicides

This study examines the effect of economic sanctions on the severity of ongoing instances of genocide or politicide. Research suggests that sanctions exacerbate human rights conditions, yet influential policymakers, human rights advocates and some scholars continue to call for economic sanctions to mitigate ongoing atrocities. Ordered logit analyses of genocides and politicides from 1976 to 2008 reveal that sanctions neither aggravate atrocities, as some of the academic literature expects, nor alleviate them, as assumed by many policymakers and advocates (and some researchers). These findings hold regardless of whether they are measured as the number or presence of sanctions, cost, level of comprehensiveness, duration or whether imposed or administered by an international organization. Threats of sanctions also have no effect on atrocity severity, either on their own or combined with other policy options.     

Spatial Pricing Policies Reconsidered: Monopoly Performance and Location

This paper reexamines the welfare implications of three pricing regimes (mill, uniform, and discriminatory) for a monopoly. Assuming linear demand and constant marginal costs, I show that with the introduction of endogenous location choice, uniform delivered pricing may provide the highest social welfare when demands in different markets are sufficiently heterogeneous; whereas discriminatory pricing always dominates uniform pricing when demands in different markets are similar.     

Wishful thinking? Towards a more realistic role for universities in regional innovation policy

ABSTRACT

The past 30 years has seen an escalating interest in the potential role of universities in contributing to their regional economies, reflected in the increasing trend for regional innovation strategies to ascribe a central role for universities, particularly in peripheral, institutionally thin places. The global economic crisis and subsequent austerity measures implemented in many developed economies have put further pressure on universities from national and regional policymakers to become more explicitly involved in contributing to their local economies in order to justify their public funding. This paper will draw on the academic literature to consider how justified this focus is by questioning whether universities are willing or even able to play the roles expected of them in contributing to regional innovation. It will critique an approach to policymaking that often views universities as homogenous actors in the regional innovation system and places an over reliance on imitating success stories from other places without sufficient consideration of the specificities of local conditions. It will argue for a more realistic and nuanced approach to involving universities in regional innovation policy, concluding with key insights for both universities and policymakers.     

Congestion Tolling and Urban Spatial Structure

According to the standard model of urban traffic congestion and urbanspatial structure, congestion tolling results in a more concentrated city. In recent years, a new model of rush-hour urban auto congestion has been developed that incorporates trip-timing decisions—the bottleneck model. In the simplest bottleneck model optimal congestion tolling without toll-revenue redistribution has no effect on trip price because the efficiency gainsexactly equal the toll revenue collected. Optimal congestion tolling then has no effect on urban spatial structure. This paper formalizes and extends this result.     

PRICING POLICY REACTIONS TO AGGLOMERATION IN A MARKET WITH SPATIAL SEARCH*

ABSTRACT. Price dispersion (variation) and agglomeration are common characteristics of spatial markets, in particular, markets with imperfect consumer information and search. However, pricing and location strategies in these markets are not well analyzed since spatial search is difficult to model without restricting the spatial dimension of the problem. This paper analyzes pricing and location strategies in a market with spatid search using a probabilistic modeling strategy that does not restrict search patterns in the plane. Specifically, the analysis considers the pricing strategy of an isolated firm in response to the agglomeration of competing firms. Results indicate that spatial and temporal price dispersion are effective responses to competitors'agglomeration. However, the relative effectiveness of these strategies varies with market conditions. In addition, agglomeration can have some counterintuitive effects. This paper also provides insights into existing theories of spatial search and spatial competition in spatially-restricted (linear and circular) markets.