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Statistical distribution of time values and underestimation of the benefits of speed

Author

Listed:
  • Claude Abraham
  • Alain Bonnafous

    (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Baptiste Ray

    (Movi'cité)

Abstract

Highlights : • Users' time savings are important in calculating net present value of a transport project.• The monetary estimates of time savings depend on the value of the time used.• The official methods of calculation most often use average values.• Using the statistical distribution of the values of time substantially modifies the result.• The higher the cost of transportation, the greater the underestimation of user surpluses.

Suggested Citation

  • Claude Abraham & Alain Bonnafous & Jean-Baptiste Ray, 2020. "Statistical distribution of time values and underestimation of the benefits of speed," Post-Print halshs-02924740, HAL.
    • Handle: RePEc:hal:journl:halshs-02924740
    DOI: 10.1016/j.tranpol.2020.08.020
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02924740
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    References listed on IDEAS

    as
    1. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-130, January.
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