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TransNIEMO: Economic Impact Analysis Using a Model of Consistent Interregional Economic and Network Equilibria

Author

Listed:
  • JoongKoo Cho
  • Peter Gordon
  • James E. Moore II
  • Qisheng Pan
  • JiYoung Park
  • Harry W. Richardson

Abstract

We describe a model that integrates a multi-regional input-output model of the U.S. (50 states and the District of Columbia) with the national highway network. Interstate commodity shipments are placed on a congestible highway network. Simulations of major choke-point disruptions redirect traffic which increases the costs of some shipments. Increased costs show up in higher prices which help to determine a new input-output equilibrium. We find economic and network equilibria that are consistent. The simulations show only moderate economic impacts. We ascribe this to the resilience of highway network. The model provides state-level detail on who bears the costs of the disruptions.

Suggested Citation

  • JoongKoo Cho & Peter Gordon & James E. Moore II & Qisheng Pan & JiYoung Park & Harry W. Richardson, 2014. "TransNIEMO: Economic Impact Analysis Using a Model of Consistent Interregional Economic and Network Equilibria," CESifo Working Paper Series 4601, CESifo.
    • Handle: RePEc:ces:ceswps:_4601
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    References listed on IDEAS

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    1. Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), 2002. "Trade, Networks and Hierarchies," Advances in Spatial Science, Springer, number 978-3-662-04786-6, February.
    2. Winston, Clifford & Langer, Ashley, 2006. "The effect of government highway spending on road users' congestion costs," Journal of Urban Economics, Elsevier, vol. 60(3), pages 463-483, November.
    3. repec:rri:bkchap:04 is not listed on IDEAS
    4. Tschangho John Kim & Heejoo Ham & David E. Boyce, 2002. "Economic impacts of transportation network changes: Implementation of a combined transportation network and input-output model," Economics of Governance, Springer, vol. 81(2), pages 223-246, April.
    5. William H. Miernyk, 1965. "The Elements of Input-Output Analysis," Wholbk, Regional Research Institute, West Virginia University, number 04, Fall.
    6. Heejoo Ham & Tschangho John Kim & David E. Boyce, 2002. "Economic impacts of transportation network changes: Implementation of a combined transportation network and input-output model," Papers in Regional Science, Springer;Regional Science Association International, vol. 81(2), pages 223-246.
    7. Park, JiYoung & Cho, JoongKoo & Gordon, Peter & Moore, James E. & Richardson, Harry W. & Yoon, SungSu, 2011. "Adding a freight network to a national interstate input–output model: a TransNIEMO application for California," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1410-1422.
    8. Marguerite Frank & Philip Wolfe, 1956. "An algorithm for quadratic programming," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 3(1‐2), pages 95-110, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    multi-regional input-output model; highway network; interstate commodity shipments; highway infrastructure failure;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

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