Economics and Modes of Transportation

Paper Summary:

This paper investigates how economics affects when people opt to use some modes of transportation over others and why these choices are made. The paper uses unemployment rates, median family income and crude oil prices to anticipate the change of passenger's miles of three transportation modes - air total passenger's miles, highway total passenger's miles and intercity/Amtrak total passenger's miles.

Table of Contents:
Introduction
Literature Review
Methodology
Results & Conclusion

From the Paper:

"For air transport, we need to focus on median family income. We usually think increasing oil prices result in decreasing the number of passengers. However, not only the oil price increases, but also the total passenger's miles increase. In my opinion, this is because the increasing income seems to offset the increasing oil prices. Another reasons is that people with high levels of income will use flight transportation more frequently than people with low levels of income; the income levels are a determining factor when choosing flight transportation. Thus, we can explain why the unemployment rate is not significant statistically with above logic."

Sample of Sources Used:

• Boyer, Kenneth Duncan. Principles of TRANSPORTATION ECONOMICS. USA: Addison Wesley Longman, 1998
• "Business School." Naver Web Site. 10 Nov. 2007 <http://blog.naver.com/ekzpro? Redirect=Log&logNo=60012207090>.
• Memmott, Jeffery. "Trends in Personal Income and Passenger Vehicle Miles." Bureau of Transportation Statistics 3 Oct.2007. 2 Nov. 2007 <http://www.bts.gov/publications/ bts_special_report/2007_10_3/index.html>.
• Meyers, Mike. "NWA among airlines raising fares to offset higher fuel costs."McClatchy - Tribune Business News 3 Nov. 2007. 15 Nov 2007 <http://proquest.umi.com/pqdwe b?index=9&did=1376708591&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType =PQD&RQT=309&VName=PQD&TS=1195496662&clientId=3552>.
• Morrison, Steven A. "The Value of Amtrak" Journal of Law and Economics Oct. 1990. 15 Nov. 2007 <http://links.jstor.org/sici?sici=0022-2186%28199010%3A2%3C361% 3ATVOA%3E2.0CO%3B2-U>.

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