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White‐Knuckle Externalities

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  • SEIJI S. C. STEIMETZ

Abstract

Congestion generates travel delays and other unobservable but palpable costs, such as stress and frustration. This paper exploits a unique empirical setting to estimate these unobservable costs and the externalities that they imply. Results suggest that the size of these externalities is comparable to the size of travel delay externalities. This paper also demonstrates that common methods for estimating travel delay externalities can reasonably approximate the combined externalities of delayed travel and unobservable congestion costs. (JEL R41, R48, D62)

Suggested Citation

  • Seiji S. C. Steimetz, 2009. "White‐Knuckle Externalities," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 304-316, April.
    • Handle: RePEc:bla:ecinqu:v:47:y:2009:i:2:p:304-316
    DOI: 10.1111/j.1465-7295.2008.00120.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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