[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v55y2017icp1-8.html
   My bibliography  Save this article

Does congestion negatively affect income growth and employment growth? Empirical evidence from US metropolitan regions

Author

Listed:
  • Jin, Jangik
  • Rafferty, Peter
Abstract
Traffic congestion has long been among the biggest economic problems in US metropolitan areas. Scholars have argued the importance of research focusing on transportation planning that aims to mitigate traffic congestion and reduce economic costs. However, most existing work has overlooked the interrelationship between congestion and economic components. With this perspective, this study seeks to explore the interrelationship between congestion, income, and employment. To this end, we focus on 86 US metropolitan areas by utilizing a simultaneous equation model. The results show that there is an interrelationship between income growth, employment growth, and congestion growth, but their effects are somewhat different between periods of the economic boom in the 1990s and the economic recession in the 2000s. In addition, our findings clearly show that traffic congestion growth negatively affects income growth and employment growth. It is suggested that transportation policy that aims to reduce traffic congestion could provide economic benefits in terms of increasing employment growth as well as income growth.

Suggested Citation

  • Jin, Jangik & Rafferty, Peter, 2017. "Does congestion negatively affect income growth and employment growth? Empirical evidence from US metropolitan regions," Transport Policy, Elsevier, vol. 55(C), pages 1-8.
    • Handle: RePEc:eee:trapol:v:55:y:2017:i:c:p:1-8
    DOI: 10.1016/j.tranpol.2016.12.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X16302475
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2016.12.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boarnet, Marlon G., 1997. "Infrastructure Services and the Productivity of Public Capital: The Case of Streets and Highways," National Tax Journal, National Tax Association, vol. 50(1), pages 39-57, March.
    2. Charlot, Sylvie & Duranton, Gilles, 2004. "Communication externalities in cities," Journal of Urban Economics, Elsevier, vol. 56(3), pages 581-613, November.
    3. Kevin T. Duffy-Deno & Randall W. Eberts, 1996. "Public Infrastructure and Regional Economic Development: A Simultaneous Equations Approach," Book chapters authored by Upjohn Institute researchers, in: Niles Hansen & Kenneth J. Button & Peter Nijkamp (ed.),Regional Policy and Regional Integration, pages 295-309, W.E. Upjohn Institute for Employment Research.
    4. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-656, September.
    5. Boarnet, Marlon G., 1997. "Infrastructure Services and the Productivity of Public Capital: The Case of Streets and Highways," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(1), pages 39-57, March.
    6. Kahn, Lisa B., 2010. "The long-term labor market consequences of graduating from college in a bad economy," Labour Economics, Elsevier, vol. 17(2), pages 303-316, April.
    7. Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-2652, October.
    8. Bhat, Chandra R. & Koppelman, Frank S., 1993. "An endogenous switching simultaneous equation system of employment, income, and car ownership," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(6), pages 447-459, November.
    9. Mokhtarian, Patricia L. & Raney, Elizabeth A. & Salomon, Ilan, 1997. "Behavioral response to congestion: identifying patterns and socio-economic differences in adoption," University of California Transportation Center, Working Papers qt2v5869bd, University of California Transportation Center.
    10. Wheaton, William C., 1998. "Land Use and Density in Cities with Congestion," Journal of Urban Economics, Elsevier, vol. 43(2), pages 258-272, March.
    11. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171, Elsevier.
    12. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    13. Deitz, Richard, 1998. "A Joint Model of Residential and Employment Location in Urban Areas," Journal of Urban Economics, Elsevier, vol. 44(2), pages 197-215, September.
    14. Mokhtarian, Patricia L. & Raney, Elizabeth A. & Salomon, Ilan, 1997. "Behavioral response to congestion: identifying patterns and socio-economic differences in adoption," Transport Policy, Elsevier, vol. 4(3), pages 147-160, July.
    15. Jae Hong Kim, 2014. "Residential and job mobility: Interregional variation and their interplay in US metropolitan areas," Urban Studies, Urban Studies Journal Limited, vol. 51(13), pages 2863-2879, October.
    16. Chali Nondo & Peter V Schaeffer, 2012. "Economic Growth and Environmental Regulations: A Simultaneous Equation Estimation," The IUP Journal of Applied Economics, IUP Publications, vol. 0(4), pages 28-49, October.
    17. Andrea Sarzynski & Harold L. Wolman & George Galster & Royce Hanson, 2006. "Testing the Conventional Wisdom about Land Use and Traffic Congestion: The More We Sprawl, the Less We Move?," Urban Studies, Urban Studies Journal Limited, vol. 43(3), pages 601-626, March.
    18. Gebremeskel H. Gebremariam & Tesfa G. Gebremedhin & Peter V. Schaeffer & Tim T. Phipps & Randall W. Jackson, 2012. "Employment, income, migration and public services: A simultaneous spatial panel data model of regional growth," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 275-297, June.
    19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    20. George W. Hammond & Eric C. Thompson, 2008. "Determinants of Income Growth in Metropolitan and Nonmetropolitan Labor Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 783-793.
    21. Matthias Sweet, 2014. "Traffic Congestion’s Economic Impacts: Evidence from US Metropolitan Regions," Urban Studies, Urban Studies Journal Limited, vol. 51(10), pages 2088-2110, August.
    22. Hymel, Kent, 2009. "Does traffic congestion reduce employment growth?," Journal of Urban Economics, Elsevier, vol. 65(2), pages 127-135, March.
    23. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
    24. Robert Cervero & Mark Hansen, 2002. "Induced Travel Demand and Induced Road Investment: A Simultaneous Equation Analysis," Journal of Transport Economics and Policy, University of Bath, vol. 36(3), pages 469-490, September.
    25. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
    26. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2010. "Analysis of county employment and income growth in Appalachia: a spatial simultaneous-equations approach," Empirical Economics, Springer, vol. 38(1), pages 23-45, February.
    27. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
    28. Greenwood, Michael J & Hunt, Gary L, 1984. "Migration and Interregional Employment Redistribution in the United States," American Economic Review, American Economic Association, vol. 74(5), pages 957-969, December.
    29. Mills, Edwin S. & Price, Richard, 1984. "Metropolitan suburbanization and central city problems," Journal of Urban Economics, Elsevier, vol. 15(1), pages 1-17, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Samir, Saidi & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The Long-Run Relationship between Transport Energy Consumption and Transport Infrastructure on Economic Growth in MENA Countries," MPRA Paper 85037, University Library of Munich, Germany, revised 06 Mar 2018.
    2. Philipp Schrauth, 2022. "The Causal Effect of Cycling Infrastructure on Traffic and Accidents: Evidence from Pop-up Bike Lanes in Berlin," CEPA Discussion Papers 48, Center for Economic Policy Analysis.
    3. Saidi, Samir & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The long-run relationships between transport energy consumption, transport infrastructure, and economic growth in MENA countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 111(C), pages 78-95.
    4. Jin, Jangik & Rafferty, Peter, 2018. "Externalities of auto traffic congestion growth: Evidence from the residential property values in the US Great Lakes megaregion," Journal of Transport Geography, Elsevier, vol. 70(C), pages 131-140.
    5. Kim, Amy M. & Ryerson, Megan S., 2018. "A long drive: Interregional airport passenger “leakage” in the U.S," Tourism Management, Elsevier, vol. 65(C), pages 237-244.
    6. Fontoura, Wlisses Bonelá & Chaves, Gisele de Lorena Diniz & Ribeiro, Glaydston Mattos, 2019. "The Brazilian urban mobility policy: The impact in São Paulo transport system using system dynamics," Transport Policy, Elsevier, vol. 73(C), pages 51-61.
    7. Selod,Harris & Soumahoro,Souleymane, 2020. "Big Data in Transportation : An Economics Perspective," Policy Research Working Paper Series 9308, The World Bank.
    8. Daniel Hummel, 2020. "The effects of population and housing density in urban areas on income in the United States," Local Economy, London South Bank University, vol. 35(1), pages 27-47, February.
    9. Sarri, Paraskevi & Kaparias, Ioannis & Preston, John & Simmonds, David, 2023. "Using Land Use and Transportation Interaction (LUTI) models to determine land use effects from new vehicle transportation technologies; a regional scale of analysis," Transport Policy, Elsevier, vol. 135(C), pages 91-111.
    10. Jangik Jin & Danya Kim, 2018. "Expansion of the subway network and spatial distribution of population and employment in the Seoul metropolitan area," Urban Studies, Urban Studies Journal Limited, vol. 55(11), pages 2499-2521, August.
    11. Amparo Moyano & Marcin Stępniak & Borja Moya-Gómez & Juan Carlos García-Palomares, 2021. "Traffic congestion and economic context: changes of spatiotemporal patterns of traffic travel times during crisis and post-crisis periods," Transportation, Springer, vol. 48(6), pages 3301-3324, December.
    12. Chao Sun & Jian Lu, 2022. "The Relative Roles of Socioeconomic Factors and Governance Policies in Urban Traffic Congestion: A Global Perspective," Land, MDPI, vol. 11(10), pages 1-17, September.
    13. Yaqi Hu & Yingzi Chen, 2022. "Coupling of Urban Economic Development and Transportation System: An Urban Agglomeration Case," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    14. Magalhães, David José Ahouagi Vaz de & Rivera-Gonzalez, Carlos, 2021. "Car users’ attitudes towards an enhanced bus system to mitigate urban congestion in a developing country," Transport Policy, Elsevier, vol. 110(C), pages 452-464.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Duranton, Gilles & Puga, Diego, 2014. "The Growth of Cities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 5, pages 781-853, Elsevier.
    2. Zhang, Wenjia & Kockelman, Kara M., 2016. "Optimal policies in cities with congestion and agglomeration externalities: Congestion tolls, labor subsidies, and place-based strategies," Journal of Urban Economics, Elsevier, vol. 95(C), pages 64-86.
    3. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    4. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer & Tim Phipps & Randall Jackson, 2007. "A Spatial Panel Simultaneous-Equations Model of Business Growth, Migration Behavior, Local Public Services and Household Income in Appalachia," Working Papers Working Paper 2007-11, Regional Research Institute, West Virginia University.
    5. Fu, Shihe, 2007. "Smart Cafe Cities: Testing human capital externalities in the Boston metropolitan area," Journal of Urban Economics, Elsevier, vol. 61(1), pages 86-111, January.
    6. Nathaniel Baum-Snow & J. Vernon Henderson & Matthew Turner & Loren Brandt & Qinghua Zhang, 2015. "Transport Infrastructure, Urban Growth and Market Access in China," ERSA conference papers ersa15p1177, European Regional Science Association.
    7. Nathaniel Baum-Snow & Loren Brandt & J. Vernon Henderson & Matthew A. Turner & Qinghua Zhang, 2016. "Highways, Market Access and Urban Growth in China," SERC Discussion Papers 0200, Centre for Economic Performance, LSE.
    8. J. Vernon Henderson, 2003. "Urbanization and Economic Development," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 275-341, November.
    9. Stephen J. Redding, 2010. "The Empirics Of New Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 297-311, February.
    10. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
    11. Berliant, Marcus & Reed III, Robert R. & Wang, Ping, 2006. "Knowledge exchange, matching, and agglomeration," Journal of Urban Economics, Elsevier, vol. 60(1), pages 69-95, July.
    12. Gabriel M. Ahlfeldt & Stephen J. Redding & Daniel M. Sturm & Nikolaus Wolf, 2015. "The Economics of Density: Evidence From the Berlin Wall," Econometrica, Econometric Society, vol. 83, pages 2127-2189, November.
    13. Stephen J. Redding & Esteban Rossi-Hansberg, 2017. "Quantitative Spatial Economics," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 21-58, September.
    14. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2016. "How to make the metropolitan area work? Neither big government, nor laissez-faire," Journal of Public Economics, Elsevier, vol. 134(C), pages 100-113.
    15. Marcy Burchfield & Henry G. Overman & Diego Puga & Matthew A. Turner, 2006. "Causes of Sprawl: A Portrait from Space," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 587-633.
    16. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    17. Gabriel M. Ahlfeldt & Nicolai Wendland, 2013. "How polycentric is a monocentric city? Centers, spillovers and hysteresis," Journal of Economic Geography, Oxford University Press, vol. 13(1), pages 53-83, January.
    18. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    19. Moretti, Enrico, 2011. "Local Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 14, pages 1237-1313, Elsevier.
    20. Stephen J. Redding, 2021. "Suburbanization in the United States 1970-2010," Working Papers 286, Princeton University, Department of Economics, Center for Economic Policy Studies..

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:55:y:2017:i:c:p:1-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.