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| | Induced Travel: Frequently Asked Questions - Planning - HEP - FHWA |
 | | Economists use the term "induced travel" to describe the additional demand for travel that occurs as a result of a decrease in the generalized cost of travel, including both travel-time and out-of-pocket costs. | | | For example, a demand elasticity value of -0.5 means that a 10 percent decrease in the price of a good will result in a 5 percent increase in demand for that good. | | | One of the most common elasticity measures used in transportation planning is the price elasticity of demand, often called "demand elasticity." Demand elasticity is defined as the percentage change in the quantity demanded for a good, divided by the associated percentage change in the price of the good. |
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http://www.fhwa.dot.gov/planning/itfaq.htm
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| | Accounting for Induced Travel in Evaluation of Urban Highway Expansion |
| | For policy makers faced with the controversial issue of induced travel, the critical issue is not whether highway capacity additions result in induced travel, but whether net societal benefits, after accounting for the external costs of induced travel, will exceed the public costs and social costs to be incurred in implementing the capacity addition. | | | Rather, the issue is whether the user benefits, including benefits to induced travelers and pre-existing travelers, and other benefits will exceed the external costs of induced travel (e.g., increases in air, water and noise pollution) and the public, social and environmental costs to be incurred in providing the added capacity. | | | The NPV of benefits per lane mile is the maximum present value (PV) of public expenditure, including both capital and operating and maintenance costs, that is economically warranted per lane mile, so that economic benefits to society might exceed costs to society, assuming no uncompensated environmental or social impacts from the expansion itself. |
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http://www.fhwa.dot.gov/steam/doc.htm
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| | Eastern Economic Journal: Supplier-induced demand and quality competition: An empirical investigation |
| | If h is an appropriate proxy for quality, the inverse demand curve (that is, fees expressed as a function of quantity, time per visit and other factors) should be increasing in h. | | | But they may not rise to their prior level, and the net effect may be that fees decline as new physicians enter the market. | | | SID concerns the origin of demand shifts facing the individual firm. |
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http://www.findarticles.com/p/articles/mi_qa3620/is_199510/ai_n8718643
(1347 words)
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| | Induced Travel Demand |
| | A thorough and honest environmental impact statement would carefully model the induced demand of the proposed highway expansion and weigh the purported travel time benefits against the environmental costs of the project and the demand it induces. | | | The price you pay includes both the dollars and the time you spend. | | | Indeed, one could question the value of a public investment that did not attract users just as one could question the value of a private sector product that did not attract customers. |
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http://www.citizensforappropriatetransportation.org/catissuebriefsep2002.htm
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| | JHR Abstracts Volume 19, 1984 |
| | When individual health insurance and other factors are held constant, additional corroboration of the physician-induced demand hypothesis is found, but the magnitude of the effect is very small and is statistically significant only for more discretionary expenditures. | | | New data from a national survey are used to test the demand inducement hypothesis and identify physician-initiated expenditures. | | | Whether market failure exists in the health care sector, because physicians induce demand in their own self-interest, has not been clearly addressed because of identification problems. |
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http://www.ssc.wisc.edu/jhr/1984ab/rossiter2.htm
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| | Chapter 5: Migration: Supply-driven or demand-induced?: Emigration pressures and structural change: Case study of the ... |
| | First, the extent and nature of labour market segmentation in the two systems needs to be taken into account, and excess demand conditions in the host country identified at this disaggregated level. | | | The current scenario of high unemployment rates in Western mature economies, with acute pressure on social services arising from usually self-imposed fiscal constraints contribute to a conflictual setting. | | | How could a reduction in external labour demand be transmitted to the domestic labour market? |
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http://www.ilo.org/public/english/protection/migrant/papers/emphil/ch5.htm
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| | Applying an Integrated Model to the Evaluation of Travel Demand Management Policies in the Sacramento Region |
| | Future studies should use land use and transport interaction models to establish the mobility benefits of induced demand for comparison with the environmental costs. | | | Comparing Scenario B to Scenario A indicates that the failure to represent changes in acres of land development accounts for a relatively smaller portion of the elasticity compared to the location of employment and households. | | | The long thin matrix just above the large matrix in Figure 2-2 shows activity that is demanded exogenously, which includes exporting industry, retired households, and unemployed households. |
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http://transweb.sjsu.edu/publications/SAC.htm
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| | Conditions and Trends: I-71 MIS Land Use Impact Analysis |
| | The research report entitled Accounting for Induced Travel in Evaluation of Metropolitan Highway Expansion stated that the critical issue is: | | | "Not whether highway capacity results in induced travel, but whether the benefits to induced travelers and pre-existing travelers and other economic benefits exceed the total social costs occasioned by induced highway travel and public, social and environmental costs incurred in providing the added capacity." | | | The reduction in congestion will reduce travel time and costs somewhat. |
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http://planning.co.cuyahoga.oh.us/i71/trends10.htm
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| | Taxpayers League of Minnesota -- Press Releases |
| | “Induced demand” is actually a pretty simple concept. | | | As supply goes up, the price goes down, and consumption obviously will follow up to a point. | | | To call that kind of “induced demand” a bad thing is ridiculous—it would be the same as decrying the availability of low cost, high quality housing to everybody who wants it, because that would increase the demand for houses. |
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http://www.taxpayersleague.com/issues/pr_display.php?rid=209
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| | Essays in the Economics of Dental Insurance and Dental Health |
| | In this paper, we formulate a non-linear dental insurance scheme financed through premium payments and compare individuals' expected utility in this system to the expected utility in the Swedish dental insurance system from 1993. | | | In the analysis, we account for the distinction between dentists working within the National Dental Service and private practitioners, as potentially they have different incentives regarding supplier induced demand. | | | A two-part, hurdle model is used to capture the fact that the decision whether or not to visit a dentist, and the decision on how many times to visit a dentist, may be governed by different processes. |
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http://www.econ.umu.se/ues/ues494.html
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| | AcademyHealth Interest Group Forums: Supplier-induced demand |
| | As I understand the Dartmouth work from the last couple of decades, that group believes that supplier-induced demand is real and an important contributor to rising healthcare costs in this country. | | | You cannot vote in polls in this forum | | | Supplier-induced demand is real, and I think of pharmaceutical companies first as the major contributor to high costs. |
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http://www.academyhealth.org/membership/forum/forum_posts.asp?TID=103&PN=1
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| | JHR Abstracts Volume 19, 1984 |
| | "Identification of Supplier Induced Demand in the Health Care Sector" Journal of Human Resources 16(3):327-342. | | | This paper explores the issues and pitfalls encountered when attempting to test empirically the hypothesis that physician, hospital, or any other input supply level induces increasing demand for health services in the strict sense of demand shift and, through that, increased demand for the input in question. | | | Evidence is presented which suggests that an empirical test of the supplier induced demand (SID) hypothesis of the type traditionally performed may not in fact be feasible with cross-sectional aggregate data such as is usually used. |
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http://www.ssc.wisc.edu/jhr/1981ab/auster3.htm
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| | Arnott, Richard and Kenneth Small, 1994, The Economics of Traffic Congestion, American Scientist, 82: 446-455 |
| | Energy and Environmental Analysis, Inc., 1999, Measuring Induced Travel Demand from Roadway Capacity Expansion: An Empirical Analysis of the US Mid-Atlantic Region, Final Report, U. Environmental Protection Agency, Washington, DC. | | | Trunk roads and the generation of traffic, Department of Transport, Standing Advisory Committee on Trunk Road Assessment, London. | | | Noland, Robert B., and Lewison L. Lem, 2002, A Review of the Evidence for Induced Travel and Changes in Transportation and Environmental Policy in the United States and the United Kingdom, Transportation Research D, 7(1), 1-26. |
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http://www.vtpi.org/induced_bib.htm
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| | Acknowledgements (ResearchIndex) |
| | A Model for Time- and Budget-Constrained Activity Demand Analysis - Kockelman (2000) | | | 0.5: A Model for Time- and Budget-Constrained Activity Demand Analysis - Kockelman (2000) | | | 1 A Statistical Analysis of Induced Travel Effects in the U.S... |
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http://citeseer.ist.psu.edu/439150.html
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| | EconPapers: Income Distribution and Demand-induced Innovations |
| | Keywords: inequality; growth; demand composition; price distortion (search for similar items in EconPapers) | | | In general, less inequality tends to discourage the incentive to innovate, but this depends on the nature of the redistribution. | | | JEL-codes: O15 O31 D30 D40 L16 (search for similar items in EconPapers) |
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http://econpapers.repec.org/paper/zuriewwpx/212.htm
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| | Induced demand - Wikipedia, the free encyclopedia |
| | Induced demand is the phenomenon that after supply increases, more of a good is consumed. | | | This is entirely consistent with the economic theory of supply and demand, however has become important in the debate over the expansion of transportation systems. | | | However it is greater than 0%, so new roadway construction will result in some additional traffic that would not have occurred but for the new capacity. |
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http://en.wikipedia.org/wiki/Induced_demand
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| | Induced Traffic |
| | This is the "Triple Convergence Principle", described above. | | | Induced traffic is a key fact in transportation planning, but it has yet to be accounted for in making traffic projections for the widening of Highway 1. | | | Used public transportation during peak hours now switch to driving, since it has become faster (modal convergence). |
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http://www.sensibletransportation.org/induced.html
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| | Induced Traffic |
| | The City is not accounting for induced traffic in their predictions. | | | for planning transportation projects and TransDec accounts for induced traffic (they use the term induced demand). | | | Transport Canada endorses using tools such as TransDec |
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http://www.ottawaeast.ca/inducedtraffic.html
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| | Economics of health care. Unequal information - doctors as agents |
| | This means we are expecting our doctor to divide herself in half - on the one hand to act in our interests as the buyer of health care for us but on the other to act in her own interests as the seller of health care. | | | So if doctors behaved like some financial advisers or computer salesmen in the past and maximised profits without any limit from a professional code, we would expect supplier induced demand to be a very major problem. | | | In a free market situation where the doctor is primarily motivated by the profit motive, the possibility exists for doctors to exploit patients by advising more treatment to be purchased than is necessary - supplier induced demand. |
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http://www.oheschools.org/ohech3pg4.html
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| | New induced demand studies |
| | Indeed, researchers agreed that building roads can still be crucial for fostering economic development, even if the potential for easing congestion is limited. | | | Some of the effects identified in both studies were immediate, and the full traffic increase occurred in two to four years. | | | Fulton and Noland said yesterday that they have revised their work and were confident of their conclusions. |
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http://www.elpc.org/lists/iltollways/msg00111.html
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| | JHR Abstracts Volume 12, 1977 |
| | This paper addresses the theoretical models designed to ascertain the existence of a variable level of physicians' activity in shifting the demand of their patients. | | | The disequilibrium analysis of other writers is analyzed and alternative specifications of such a model are set out. | | | Two basic approaches are followed: equilibrium models of the demand for health care, and disequilibrium models. |
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http://www.ssc.wisc.edu/jhr/1978ab/green5.htm
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| | induced - definition of induced by the Free Online Dictionary, Thesaurus and Encyclopedia. |
| | A strong sense of the value and blessings of union induced the people, at a very early period, to institute a federal government to preserve and perpetuate it. | | | This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. | | | He argued that it enticed men with the calmness of its looks, but when it had induced them to plow its waters, it grew rough and destroyed them. |
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http://www.thefreedictionary.com/induced
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| | Spreadsheet Model for Induced Travel Estimation (SMITE) |
| | This Lotus 123 spreadsheet model applies the principles of economic analysis to evaluate highway capacity expansion in an urban setting, taking into account new travel that may be induced by highway expansion over and above that which is simply diverted from other regional highways. | | | The SMITE spreadsheet can be used to provide useful information to assist policy makers in evaluating proposals for specific additions to highway capacity for corridor studies. | | | View paper on Accounting for Induced Travel in Evaluation of Urban Highway Expansion |
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http://www.fhwa.dot.gov/steam/smite.htm
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| | Induced Supply: A Model of Highway Network Expansion at the Microscopic Level |
| | The elasticities are lower than reported in previous research, indicating the importance of separating new construction from the expansion of existing links. | | | The results indicate that capacity enhancements in the previous years, given by lane additions have a positive and significant effect on the VKT of the link, confirming the induced demand hypothesis. | | | Abstract: This paper analyzes the induced demand hypothesis using a disaggregate approach at the link level. |
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http://www.ce.umn.edu/~levinson/Papers/InducedDemand.html
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| | Expanding Highways Induces Traffic - Transportation - Sierra Club |
| | Get the Sierra Club Insider and stay current on environmental issues and activist opportunities. | | | "A Statistical Analysis of Induced Travel Effects in the U.S. Mid-Atlantic Region," forthcoming in the Journal of Transportation and Statistics. | | | "Evidence of Induced Demand in the Texas Transportation Institute¹s Urban Roadway Congestion Study Data Set," presented at Transportation Research Board, Washington, DC. |
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http://www.sierraclub.org/sprawl/transportation/seven.asp
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| | MnLRT: Induced Demand in Cincy Traffic Jams Galore |
| | calculated from a static analysis that included no induced travel | | | Transport Studies and William A. Cowart, ICF Consulting in Fairfax, | | | More information on induced traffic and sprawl can be obtained from |
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http://www.geocities.com/Yosemite/2288/cincyjams.htm
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| | Lecture 19 |
| | Asymmetric information between patients and their physicians, target income hypothesis and and supplier-induced demand: I will start with this topic | | | Not much decrease in income per physician as physician-population ratio increases | | | In areas of greater MD supply, physicians maintain income by raising fees and/or by increasing utilization (e.g., asking patients to return for a revisit) |
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http://www.econ.duke.edu/~fsloan/156/Lec19.html
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| | MTR 21, NYMTC holds Technical Exchange |
| | NYMTC director Ray Ruggieri argued that because so many influences external to the transportation system factor into individual travel decisions, driving induced by highway expansions in not a detectable phenomenon. | | | He gave numerous examples where traffic capacity was reduced dramatically (when part of the West Side Highway collapsed in 1973 and traffic "disappeared," and the closing of the Williamsburg Bridge in 1988, which produced similar results. | | | The New York Metropolitan Transportation Council (NYMTC) held a "Technical Exchange" lunch on Feb. 1 -- topic: "Highway Capacity: Friend or Foe?" Debate centered on the proposition that adding highway capacity induces drivers to take more or longer car trips. |
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http://www.tstc.org/bulletin/19950209/mtr02102.htm
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| | An Analysis of the Relationship Between Highway Expansion and Congestion in Metropolitan Areas |
| | Land use measures also play an important role in reducing automobile dependence and congestion. | | | A well-established body of research shows that new lanes tend to get filled up with new traffic within a few years, particularly if surrounding routes are also congested. | | | The authors, UC Berkeley researchers Mark Hansen and Yuanlin Huang, found that at the metropolitan level, every 1% increase in new lane-miles generated a 0.9% increase in traffic in less than five years, which led them to conclude that "With so much induced demand, adding road capacity does little to reduce congestion." |
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http://www.ucolick.org/~de/AltTrans/analysis.html
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