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 DISPERSION OF TECHNOLOGICAL INNOVATION: A CASE STUDY FOR THE NETHERLANDS BY MEANS OF PARTIAL LEAST SQUARES*

ABSTRACT. In this paper the impact of spatial and nonspatial variables on the innovation potential and innovativeness of (small) industrial firms in The Netherlands will be analyzed. Innovation potential and innovativeness will be conceived as latent variables which will be measured by a partial least squares approach. The variables reflecting innovation potential are notably input variables such as internal and external R&D, while innovativeness will be based on output indicators such as the number of product and process innovations. The regional dimension enters our analysis essentially at two levels. First, we will investigate whether more innovative firms are to some extent spatially biased (i.e., on the basis of intrafirm characteristics). Secondly, we will analyze the relevance of an indigenous regional impact, per se. In other words, we will examine whether firms with an equal innovation capacity will differ in actual (i.e., realized) innovativeness as a consequence of different regional conditions. For the first issue, our results indicate that not all regions are equally well-endowed with potentially innovative (small) firms. Our analysis even demonstrates that these firms are underrepresented in regions which are generally considered to offer the most favorable production environment. After compensating for these differences in the composition of the regional set of firms, we demonstrate that an indigenous regional impact per se cannot be identified in The Netherlands.     

Old‐age Poverty in Indonesia: Measurement Issues and Living Arrangements

Drawing on several rounds of nationally representative household survey data for Indonesia, this article shows that poverty rates among the elderly are substantially higher than those of the rest of the population. Using sensitivity checks on adult equivalence scales and economies of scale, the author demonstrates that the gap in poverty rates between the elderly and non‐elderly population would increase even further if moderate changes to the per‐consumption expenditure assumption were made. Additional panel data evidence reveals that about one‐third of the elderly population is currently vulnerable to poverty. While the findings do not show gender differences in old‐age poverty rates, they do highlight important differences in living arrangements across gender, with the majority of elderly women being widows while the majority of men are still married at all ages.