ECONOMIC APPROACH TO VALUE OF TIME AND TRANSPORTATION CHOICE

Travel time was recognized to affect the demand for transportation before it was formally incorporated in economic theory. No traveler, producer of transportation services, or transportation-oriented policy maker needs an economist to make this fact know. The major contribution of economics in this context is in formulating the problem and creating a framework that allows one to measure the effect of travel time on the demand for trips. In this framework, the price of the trip includes both the money expanditures and the opportunity cost of time. Thus travel time affects the choice of destination, the choice of mode, and the number of times one travels. In this paper, 1 shall try to describe the current state of economic theory regarding the value of time, emphasizing some of the difficulties involved in its empirical application.

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  http://onlinepubs.trb.org/Onlinepubs/trr/1976/587/587-001.pdf
• Summary URL:
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• Supplemental Notes:
  • Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Authors:
  • Gronau, Reuben
• Publication Date: 1976

Media Info

• Media Type: Digital/other
• Features: Figures; References;
• Pagination: pp 1-5
• Monograph Title: Value of travel time
• Serial:
  • Transportation Research Record
  • Issue Number: 587
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Economics; Mode choice; Transportation; Travel budgets; Travel costs; Travel demand; Travel time
• Old TRIS Terms: Modal selection
• Subject Areas: Economics; Planning and Forecasting; Society; Transportation (General);

Filing Info

• Accession Number: 00141937
• Record Type: Publication
• ISBN: 0309025532
• Files: TRIS, TRB
• Created Date: Apr 13 1977 12:00AM